UK minister bids for cash to help energy-intensive industries
Reuters
Published Oct 11, 2021 16:08
Updated Oct 11, 2021 17:00
LONDON (Reuters) - Britain's business minister Kwasi Kwarteng has submitted a formal bid to the finance ministry for assistance to help industries affected by high energy prices, the BBC reported on Monday.
Producers of steel, glass, ceramics and paper and other sectors have said they may be forced to halt production unless the government does something about energy prices, which have rocketed due to a shortage of natural gas in Europe.
"Understand Business Secretary has now submitted a formal bid for assistance for industries hit by high energy prices," BBC Political Correspondent Nick Eardley wrote on Twitter (NYSE:TWTR).
A source at the business ministry confirmed the report but did not provide any further details of the request.
The request partly shifts responsibility for a difficult and expensive problem to the finance ministry, which is already facing a huge bill for supporting the economy through the COVID-19 crisis.
It comes a day after the finance ministry denied a claim by Kwarteng that it was working with him on an industry support package - a row which signalled tension within government over what, if anything, ministers are willing to do to help firms.
"Ministers and officials continue to engage constructively with industry to further understand and to help mitigate the impacts of high global gas prices," a business department spokesperson said when asked about the BBC report.
"Our priority is to ensure costs are managed and supplies of energy are maintained.”
Kwarteng on Sunday said the government was not in the business of bailouts, and was not considering implementing a price cap on energy costs for industry.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.