UK to cut energy support scheme for firms; BoE’s Pill sees risk of persistent inflation – as it happened

Rolling coverage of the latest economic and financial news

• Energy bill support for UK businesses to be cut by Jeremy Hunt
• UK manufacturers fear blackouts and job losses after energy subsidy cut

Resolution Foundation have outlined the grim cost of living squeeze ahead, which will mean a 2,100 drop in incomes for a typical household (as flagged earlier).

They point out that wages will lag behind rising prices for some months, while household energy bills will jump this year as the government cuts back on its support.

The plans set out today will deliver this reliable energy and ensure the scheme that sits at the heart of Britain's energy security is fit for the future."

Incentivising greener, flexible technologies to compete in CM auctions by offering multi-year contracts for low carbon flexible capacity, such as smart demand side response' technologies and smaller-scale electricity storage, supporting the move towards delivering secure, clean and affordable British energy in the long term.

Ensuring a clear pathway for carbon intensive forms of capacity as the UK transitions to net zero and the capacity mix of the CM diversifies, by sending a clear signal to oil and gas generators about the timelines and requirements for emissions reduction in the 2030s and seeking evidence on mitigating any barriers this capacity may face in decarbonising.

Underpinning these efforts with a proposed new lower emissions limit in the Capacity Market which will kick in for new build plants from 1 October 2034, meaning all new oil and gas plants receiving long term agreements through the CM will be obliged to lower emissions, through decarbonising their capacity by introducing carbon capture, hydrogen and other low carbon methods into their generation and by reducing running hours.