Liz Truss is reportedly set to outline a £40bn support package for businesses struggling with soaring energy bills in the coming weeks.
The incoming Prime Minister is mulling over two options – setting a fixed energy price for businesses or a flat percentage discount that energy suppliers must offer to companies.
Bloomberg reports that the government will agree to reimburse energy suppliers for their losses, with the cost set to come to £40bn over the next six months and up to £67bn over the next year.
It has also been suggested in leaked documents that small businesses could receive a larger discount on bills, with Whitehall keen to protect local High Street firms as much as households.
The package will be in place for the start of next month, which is when energy contracts for many businesses are ending, and the terms will be revisited on a rolling basis.
The Treasury is also drafting a household support package that could be worth more than £100bn to help families facing a near three-fold increase in energy prices in January.
Energy bills for businesses are expected to climb even higher as they do not have the benefit of an energy price cap, like households.
There have been warnings that thousands of businesses will go bust over autumn and winter – particularly in the manufacturing, hospitality and leisure sectors – due to the soaring global price of energy caused by Russia’s invasion of Ukraine.