| Powered by readers, open to all. | | | |  UK businesses, charities and public sector bodies are finally going to learn what support they will receive to help them through the energy crisis – but will it be enough?
The government is expected to announce a cap on wholesale gas and electricity costs for these groups today, in the second part of its energy price guarantee to cut soaring bills.
The plan, to be announced by the business secretary, Jacob Rees-Mogg, is expected to cut the rate for electricity and gas for non-domestic users by about 50% and 25% respectively, compared with current contracts.
It is likely to cost tens of billions of pounds, depending how high wholesale energy prices remain.
Two weeks ago, Liz Truss promised "equivalent support" for businesses and public sector organisations over the coming winter, when she announced the government would cap domestic bills at an average of £2,500 a year.
But while those domestic cap runs for two years, the business support may only last for six months for many firms.
The discounts are set to apply to contracts signed since 1 April this year, and would last for six months starting from 1 October, Bloomberg reported last night.
That would help companies get through the winter crunch but provide less certainty about the future.
Yesterday, the pub chain Fuller's revealed its energy bill was due to more than double this year, from £8m to £18m, without government support.
Business groups have warned that the UK faces a "lost generation" of traders, adding that a cap would not affect high standing charges imposed by suppliers.
Britain borrowed more than expected in August, as soaring inflation pushed up the UK deficit.
Public sector borrowing, excluding state-owned banks, came in at £11.82bn last month, the Office for National Statistics said.
This was £2.6bn less than in August 2021 but £6.5bn more than in August 2019, before the coronavirus pandemic, when the UK borrowed £5.3bn to balance the books.
A Reuters poll of economists had predicted the UK would borrow £8.45bn.
The deficit was pushed up by the cost of repaying existing debt.
The UK spent £8.2bn on interest payments on central government debt in August. That includes £4.7bn due to the impact of rising RPI inflation (which pushed up the cost of repaying index-linked government debt).
We will also be watching the financial markets today, where investors are bracing for another hefty rise in US interest rates later.
Economists are predicting the US Federal Reserve will raise its benchmark interest rate by 0.75 percentage points, the third such rise in a row, and signal plans to raise rates again in the coming months.
The agenda
• 9am BST: UK government's energy business support plan expected
• 11am BST: CBI industrial trends survey of UK factories
• 3pm BST: US existing home sales in August
• 7pm BST: US Federal Reserve interest rate decision
• 7.30pm BST: Federal Reserve press conference
We'll be tracking all the main events throughout the day ... | | |  | | Sign up to The Guide | | An irreverent look at pop culture, and weekly recommendations for what to watch, listen to and read | | | |  ... we have a small favour to ask. Guardian newsletters offer an alternative way to get your daily headlines, dive deeper on a topic, or hear from your favourite columnists. We hope this curated format brings something different to your day or your week, and you'll consider supporting us today.
We've been publishing since long before email's existence - last year we celebrated the Guardian's 200th anniversary. For more than two centuries, readers have been turning to us for independent, trustworthy reporting on world events, people and power.
Now, we're proud to say we have more than 1.5 million paying supporters in 180 countries. As a reader-funded news organisation, this support is vital. It protects our editorial independence, so we can remain free of shareholders or a billionaire owner. We can continue to produce fearless, factual journalism that's always free from commercial and political influence.
If you share in our mission, and value this newsletter, we hope you'll consider supporting our work today. From just $1, you can make a difference. If you can, please consider selecting a regular amount to give each month or year. Thank you. | | | |  | Manage your emails | Unsubscribe | Trouble viewing? | | You are receiving this email because you are a subscriber to Business Today. Guardian News & Media Limited - a member of Guardian Media Group PLC. Registered Office: Kings Place, 90 York Way, London, N1 9GU. Registered in England No. 908396 | | | | | |
The only party not getting heartburn over GSK demerger is the lawyers 
.png)
0 Comments