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British businesses are calling on chancellor Rachel Reeves to overhaul the government’s energy policies, as she pledged to provide targeted support for those “who need it most” amid rising energy costs.
Addressing the Commons yesterday (24 March), Reeves said that “contingency planning is taking place for every eventuality so that we can keep costs down for everyone and provide support for those who need it most”.
She unveiled plans to review the powers of the Competition and Markets Authority (CMA) to stop potential “price gouging” by energy companies, amid claims some petrol retailers were profiteering from rising fuel prices.
Reeves also said she would be meeting with supermarket and bank bosses this week “to see how they can further protect their customers”. However, according to The Financial Times, senior figures in the banking and retail sector said these meeting demands were “entirely performative”.
Helen Dickinson, CEO of the British Retail Consortium, told the FT: “This seems to be a solution looking for a problem.” She added that the government should instead “focus on its energy policy and the pipeline of additional policy costs that are about to impact businesses”.
Rain Newton-Smith, CEO of the CBI, told the paper: “The government can do more now, including cutting policy costs from firms’ bills and targeted support for energy efficiency.”
CEO of UKHospitality, Kate Nicholls, added that “ministers need to urgently review and pause government imposed non-commodity costs and levies”.
Business leaders also told the FT they were specifically concerned about an upcoming increase in energy bills next month to fund the construction of the Sizewell C nuclear power station.
There were also concerns over the impact on hauliers, as the ongoing conflict in Iran has already caused fuel costs to rise by approximately a third. This surge is impacting UK hauliers, who transport 80% of goods across the country, leading to calls for a freeze on fuel duty.
