IoD Cautiously Welcomes PMs Energy Statement

IoD says business sector welcomes 'pragmatic' energy cost support from government

IoD says business sector welcomes ‘pragmatic’ energy cost support from government

The Iod has commenting on the Prime Minister’s announcement that businesses will, for six months, have an ‘equivalent guarantee’ to the new household price cap followed by targeted support to vulnerable sectors.

This will be decided by a review that will be concluded within three months.

Jonathan Geldart, Director General of the Institute of Directors, said: “Businesses will welcome this pragmatic intervention.

“It will help firms struggling with eye-watering energy costs plan for the future with greater certainty.

“It is particularly encouraging that the intervention will of itself put a downward pressure on consumer price inflation, which has been top of the business worry list for the best part of a year.

“We also welcome the:

  • reiteration of the government’s commitment to achieving our net zero targets,
  • the long-term review of energy regulation to fix underlying problems,
  • the ambition to become a net exporter of energy by 2040,
  • and pricing renewable energy through contracts for differences rather than at the marginal cost.

“What we need now is an external reassurance that the scale of the intervention does not jeopardise the public finances.

“That’s why it’s crucially important that the Office of Budget Responsibility can swiftly produce its independent assessment of the impact on government debt and the wider macroeconomy.

“We also want to see greater support for smaller businesses trying to accelerate their own path to net zero.

“We would hope that the anticipated policy work on how our climate targets can be achieved in a ‘pro-growth’ way, as the Prime Minister announced, can include such an assessment as a priority.”