Energy bailout for stricken firms being drawn up over fears 400,000 small businesses could go bust
AN ENERGY bailout for stricken companies is being drawn up over fears 400,000 small firms could go bust.
Anxious bosses hit by soaring bills will benefit from a business rates cash grant if given the green light by the new PM.
Treasury officials led by Chancellor Nadhim Zahawi are looking at proposals to give struggling firms financial aid similar to the council tax rebate scheme for households.
It comes as Business Secretary Kwasi Kwarteng, tipped to be Chancellor under a Liz Truss Premiership, said “help is coming” as bosses warn of a pending jobs catastrophe.
Craig Beaumont, of the Federation of Small Businesses, said: “We’re talking to the Treasury under its new leadership about the levers they can pull. There is no price cap for small businesses and no financial support either.”
Discussions have also taken place over reducing VAT on energy and a cut in fuel duty.
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Kate Nicholls, chief executive of UK Hospitality, said: “Without help many businesses will go to the wall costing jobs, livelihoods and hitting tax and government revenue.”
There are one million small business employers who keep 13million people in work.
The intervention by Mr Kwarteng sparked a war of words with Rishi Sunak supporters last night over help for those struggling to pay bills.
A spokesman for Mr Sunak said Truss supporters have “slowly woken up to the reality of what winter brings”.
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But John Redwood MP, a Truss supporter, said: “Of course Liz will offer more help with the cost of energy.”
A government spokesman said: “We’ve cut taxes for businesses by increasing the Employment Allowance and slashing fuel duty.
“We’ve also introduced a 50 per cent business rates relief and frozen the business rates multiplier.”