Authorities discuss bailout fund for energy firms

New Chancellor Kwasi Kwarteng is in talks with bank bosses to thrash out the details of a £40 billion bailout fund for energy firms. Bank of England governor Andrew Bailey is also in the talks amid mounting concerns over soaring wholesale gas prices.
 
The government last week announced the Energy Markets Financing Scheme, which would see energy firms being loaned the cash they need to cover rising costs.
 
The Treasury said the fund, which will be provided by the Bank of England, will be available as “a last resort” to ensure firms can buy the energy they need, even if global prices continue to rise as a result of the war in Ukraine.
 
Kwarteng is preparing to deliver an emergency mini-budget soon which will contain the government’s plans for growing the economy. He is expected to unveil the government’s plans to reverse the rise in national insurance and scrap the scheduled rise in corporation tax in an attempt to boost economic growth.
 
The chancellor is also under pressure to set out what help the government will give businesses to cope with rising energy bills. Prime minister Liz Truss recently unveiled plans to cap the typical household’s energy bill at £2,500 a year until 2024. Downing Street also admitted recently that the business support package could be delayed, leading to warnings that could see thousands of firms go to the wall.