Government’s new ‘Energy Bill’ support for UK businesses and charities welcomed
The Government has announced details of a new energy scheme to help businesses, charities and the public sector pay their energy bills, which will no doubt bring much relief over the next 12 months. Non domestic energy users will receive a discount on energy bills from 1 April 2023 until 31 March 2024, providing greater certainty for businesses.
The discount means organisations with a contract with a licensed energy supplier will see a unit discount of up to £6.97/MWh automatically applied to their gas bill and a unit discount of up to £19.61/MWh applied to their electricity bill, except for those already benefiting from lower energy prices.
The organisations to benefit from the scheme do not need to apply for the discount and it will be automatically applied to their bills.
For businesses in sectors which have been identified as the most energy and trade intensive, i.e., manufacturing, they will receive a gas and electricity bill discount based on a supported price, which will be capped by a maximum unit discount of £40.0/MWh for gas and £89.1/MWh for electricity. The discount will apply to 70% of energy volumes.
Many businesses in England will also benefit from support previously announced which includes, business rates bill support over the next five years, a freeze on fuel duty, a six-month extension to the alcohol duty freeze and businesses with profits below £250,000 will be protected from the full corporation tax rate rise and those making less than £50,000 will not face any increase at all.
This also follows the much-needed good news that the UK economy grew by 0.1% in November thanks to events such as the World Cup. Whilst there may be tough times ahead for many businesses and sectors due to other challenges and increased costs, it is encouraging that there is continued government support and this news that the UK economy has not officially entered into a recession.
This is clearly good news for businesses and this certainty gives them the ability to price their goods and services more accurately and competitively and to budget for these costs over the next financial year.
If you would like to discuss your business, contact our team today.
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