CBI responds to Government energy package for households & businesses

CBI Chief Economist Rain Newtown-Smith said:

On households:

“We welcome today’s bold and decisive action from Government that will help shield households from catastrophic rises in energy costs. Freezing prices will limit some of the damaging hardship faced by families this winter and for the wider economy.

“The Prime Minister has moved swiftly in making some tough choices and has rightly recognised the scale of the challenge people are facing. Big spending now needs big plans to recapture sustainable economic growth.

“By providing this intervention, the Government now has the chance to make our energy system more resilient for the future. That means taking swift action to reform the market rapidly and wage an all-out national energy efficiency programme to help households cut their consumption.”

On businesses:

“Government is backing UK business by helping all firms across the economy.  Skyrocketing energy prices could have made many well-run businesses unviable this winter and these measures will help ensure that fewer fail.

“The devil will now be in the detail to come. Government, businesses and energy suppliers must work together to ensure the support pledged gets to firms quickly.

“This energy crisis is not impacting all firms equally, so it’s encouraging that more targeted measures are to be introduced for businesses in sectors that are most at risk.

“Despite these tough times, business remains in no doubt that doubling down on net zero is the route out of this crisis, the way we grow our economy and the way we make ourselves more energy resilient for the future.”