'Ridiculous' parliamentary recess to delay urgent energy support for businesses

Government urged to undo "ridiculous" recess and reminding MPs to work so they can pass energy bill action before prices rise in October.

Companies in sectors such as hospitality and manufacturing warned they could close this fall due to soaring prices without urgent government help.

The government has pledged to help - but unlike its plan for households, support businesses will require parliamentary time so that new legislation can be introduced.

Yet parliamentary business has been suspended following the death from the Queen, and this break is expected to come with a scheduled recess for the parties to hold their conferences.

< p>As a result, MPs won't even begin to consider the legislation until the second half of October, meaning businesses may have to wait until November for energy support.

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Hospitality chiefs on Wednesday urged the government to reverse the suspension of the conference to pass to something else.

"This [delay] is because energy plans require legislation - unlike domestic support - and with Parliament back in session next week there may not be there may not be enough time to get through it before the price increases come into effect on October 1,” said Kate Nicholls, chief executive of industry group UK Hospitality. "That's why it seems ridiculous to go ahead with the suspension of the conference."

The Prime Minister has promised business support "equivalent" to his annual price cap of 2 £500 for households, but legislation is needed to bring this in because there is no existing system like the Ofgem home energy price cap for businesses.

The government says details of the legislation are being worked out and will be delivered in due course.

But business leaders have reportedly been warned in recent meetings that the program may not be ready before November.

“It is not finalized yet,” a government official told Finance Hours. “I don't know if it will happen before November. There is some debate as to whether this can be brought forward and happen before then."

Some small businesses like pubs and takeaways are already closing as they receive bills revised energy bills, with forecasts of up to 7 out of 10 nightlife venues may have to close.

The...