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Homeinternational newsBritish government's announcement to pay half of electricity, gas bills of business companies

British government's announcement to pay half of electricity, gas bills of business companies

WORLD MEDIA1 WORLD MEDIA1 September 21, 2022

 Britain has released a six-month plan under which the government will pay half of the electricity and gas bills of businesses.

According to the French news agency AFP, on Wednesday, the new government of British Prime Minister Liz Truss has released a plan to provide relief to businesses under pressure due to rising prices, which will come into effect next October.

In a statement issued by the government, it has been said that the wholesale price of gas and electricity for business companies, except for the energy sector, charities, hospitals and schools, will be limited to half of the expected price in the open market.

Earlier, Prime Minister Liz Truss introduced a two-year plan to freeze gas and electricity prices for households, which will come into effect next month.

Finance Minister Kwasi Kwarteng said on Wednesday that the government has taken these steps to save businesses from collapse, save jobs and contain inflation.

The government made the announcement a day before it presents a mini-budget on Friday when Finance Minister Kwasi Kwarting is expected to announce tax cuts.

The Minister of Finance is trying to promote economic development through the budget, while on the other hand, according to experts' estimates, the rising oil prices due to the Ukraine war may cause an economic crisis for the UK.

The Confederation of British Industries (CBI), the national body of British industries, has welcomed the government's announcement.

At the same time, the CBI has urged the government to find a long-term solution to the energy problem to reduce demand and increase supply.

Liz Truss promised to act quickly to tackle Britain's economic crisis and said she would have 'a plan within a week to tackle rising energy bills and secure future fuel supplies. will come.'

She signaled during her election campaign that she would end tax hikes and cut other taxes, which some economists say would increase inflation.

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