Sunak seems to rule out helping companies with gas prices
Chancellor Rishi Sunak has daunted hopes that the government can help companies with high gasoline prices, saying that “it is not the government’s job” to manage the costs of individual products.
When asked if he would accept some companies going bankrupt, Sunak said that he “believes in a market economy” and that he must make sure that taxpayers’ money is protected.
The comments come at a time when rising energy prices are putting companies under pressure, raising fears that industries may shut down.
Speaking in Washington after assisting the G7 finance ministers, Sunak said:
We are prepared to work with companies and provide assistance as needed. It would not be appropriate for you to comment on the particular situation of any particular company.
But in general I believe in a market economy, as it has served us very well in this country. It is not the government’s job to go in and start managing the price of each individual product.
Sunak added that the government recognizes that people are concerned about inflation, so it recently launched a £ 500 million support fund to help families this winter.
We are aware of some of these challenges and have stepped in to provide support to families in need.
However, charities have warned that this winter hardship fund will not meet the scale of the challenge facing millions of low-income families.
Asked about the supply chain crisis, Sunak He argued that the problems are “global in nature, so we cannot fix each and every problem,” but promised that there will be a “good number of Christmas gifts available.”
Sunak has been locked in a battle with Kwasi Kwarteng, the Secretary of Commerce, for some type of financial support to companies at risk of closure due to the energy crisis.
But companies have already warned that simply offering loans to soften the impact of rising gasoline prices “will not solve the problem.”
Introduction: Industry could shut down if UK runs out of gas in cold winter
Good morning and welcome to our continued coverage of the world economy, financial markets, the eurozone and business.
One of Britain’s leading industrialists has warned that the industry could be forced to shut down if the UK suffers a bad winter.
Sir Jim Ratcliffe He said last night that the lack of gas storage had left the UK vulnerable and that gas prices were likely to remain high throughout the winter.
That could lead to a general shutdown, he warned, if a harsh winter triggered increased demand from businesses and consumers, outstripping supplies.
Appearing on ITV’s PestonAsked if the country could shut down due to a prolonged cold snap, Ratcliffe, founder of the industrial giant Ineos, he replied:
“Yes, in which case, then, what you would do is shut down the industry.”
That would be a severe blow to an economy still recovering from the Covid-19 pandemic.
As Ratcliffe put it:
“Economically … we are in a bad place after Covid, so there is no need to shut down the industry, and that is not good for British industry if we tell all of our customers that we cannot supply them.”
Ratcliffe said it was difficult to predict how long the current situation will last, but predicted that it will likely continue through the winter due to increased demand for gas.
And he criticized the UK’s lack of gas storage relative to other European countries, saying it was “a bit pathetic really for a nation as important as the UK” to have only 10 days of storage.
“Four years ago when we had, if you remember, the ‘Beast from the East’, we were a day or two away from running out of gas in the UK.
“If we had run out of gas, it would have been a disaster for, you know, older people who couldn’t have heat in the house, for the industry that would have had to shut down. But we were in a few days, and we did ”.
UK industry leaders have been warning for several days that factories could be forced to close unless the government provides support, and steel companies say they are on the brink of a full-blown crisis that puts them at risk. the jobs.
The increase continues to bring energy providers closer to the brink. Two more firms collapsed on Wednesday: Pure Planet, a renewable energy firm backed by the oil company BP, and Colorado Energy.
- 9am BST: IEA Oil Market Monthly Report
- 9.30 a.m. M. BST: Bank of England Credit Conditions Survey
- 9.30am BST: ONS weekly economic activity and social change in the UK, real-time indicators
- 11 a. M. BST: Bank of England policymaker Silvana Tenreyro da tThe Yrjö Jahnsson Prize Conference
- 1.30pm BST: Weekly US Unemployment Claims.
George is Digismak’s reported cum editor with 13 years of experience in Journalism