US Insider

  • News
  • Business
  • Lifestyle
  • Sports
  • Marketing
  • Contact Us
Menu
  • News
  • Business
  • Lifestyle
  • Sports
  • Marketing
  • Contact Us
  • News
  • Business
  • Lifestyle
  • Sports
  • Marketing
  • Contact Us
  • News
  • Business
  • Lifestyle
  • Sports
  • Marketing
  • Contact Us
Search
Close this search box.
  • News
  • Business
  • Lifestyle
  • Sports
  • Marketing
  • Contact Us
Search
Close this search box.
Home News

UK Plans to Support Households and Companies in $500 Billion Funding

Grace Burton by Grace Burton
September 12, 2022
in News
U.K. Environment Agency to transfer coastal communities as sea levels rise
Share on FacebookShare on Twitter
 

The UK said that it would provide subsidies to people and businesses to assist them in coping with the soaring cost of electricity. The country is following other European countries’ example by promising to protect their economies in the aftermath of power system stress brought on by a decline in the Russian energy supply.

The UK’s proposed strategy might cost the nation £150 billion ($172 billion), according to economists. The total planned government subsidies in European countries, including Austria and Germany, exceeded $500 billion.

Households will only be required to pay up to £2,500 ($2,880) a year for the first two years of the scheme, which will begin in October. Additionally, the initiative will provide businesses, nonprofits, and other government agencies with sufficient funding to cover their electricity costs. The UK has adequate money to cover expenditures for up to six months in these industries. The term may, however, extend under certain circumstances.

“Because the program does not specifically target the most needy but is rather broad-based, it will be relatively expensive,” Salomon Fiedler, a bank analyst from Berenberg, said.

“The support package for households may cost around £100 billion (over 4% of UK GDP). Further measures for businesses may take the total price tag to around £150 billion,” he added.

Read Also: Vice President Kamala Harris Concerned with Court’s Integrity Following its Decision Overturning Roe v. Wade

The EU needs the funding

Analysts contend that capping energy prices is the most effective strategy because expenses for individuals and companies have risen steadily in recent months. Currently, a household already spends at least $2,263 or £1,971 on energy bills. However, since the start of the year, this number has increased by 54%.

If the subsidies did not exist, bills would already have gone past the £3,500 cap. Next year, this figure might need to rise. Most firms have already warned that they won’t be able to withstand the crisis if the current circumstances persist. Luckily, the government’s action helped to lift stakeholders’ spirits.

“The price of inaction would have been far greater than the cost of this intervention,” said finance minister Kwasi Kwarteng.

Prime Minister Liz Truss declared during a parliament session that there will be no taxation on energy firms to pay for the assistance. Instead, money borrowed by the government will be used. Investors, however, are skeptical of Truss’s plan since they believe that the UK would ultimately suffer as a result of its massive borrowing.

Read Also: Longest-Reigning Monarch, Queen Elizabeth II dies at 96

More needs to be done

According to a think group in Brussels, the EU and the UK have already spent nearly $280 billion to aid consumers to cope with soaring costs. Included are the costs incurred when the energy prices began to rise in September of last year.

When Russia attacked Ukraine this year, the EU and UK invested the remaining portion of their commitment. Prices for goods and commodities then sharply climbed.

Germany informed its citizens that it would be providing homes and businesses with a $65 billion subsidy to help alleviate growing energy costs. The energy price in Austria will similarly be frozen beginning in December 2022 and lasting through June 2024. The initiative’s entire expense would be $4 billion.

In total, the UK and EU have already spent more than $500 billion on subsidies to address the energy crisis. However, experts assert that additional action is required since Russia recently cut off its supply to Europe.

To tackle issues connected to the energy crisis that is presently afflicting most of Europe, energy ministers from the Union met in an emergency session. The price ceiling on Russian gas, the connections between gas and power costs, and further steps to be implemented are among the topics that will be discussed.

“We must cut Russia’s revenues, which Putin uses to finance this atrocious war against Ukraine,” stated Ursula von der Leyen, EU Commission President.

Source: CNN

Tags: Featured-top
Grace Burton

Grace Burton

Ambassador

Grace is a driven marketing strategist and avid sports enthusiast who has a keen interest in exploring the intersection between these two fields. With a double degree in Marketing Communications and Kinesiology, she has honed her skills and brings a unique perspective to her writing. Her pieces are always thought-provoking, informative, and provide valuable insights to her audience.

Related Posts

The Future of Energy: What to Know Before Moving to a New Location
News

The Future of Energy: What to Know Before Moving to a New Location

September 19, 2023
Derna
News

Protests Erupt in Flood-Ravaged Derna: Citizens Demand Accountability Amidst Tragedy

September 19, 2023
Da Jue Yang Yan'
News

Da Jue Hollywood Exhibit Celebrates the Phenomenal Success of Da Jue Yang Yan’s California Painting Exhibition Tour

September 18, 2023
Next Post
Full Tuition Subsidy Program of Princeton now Covers Families Earning Under $100,000 Every Year

Full Tuition Subsidy Program of Princeton now Covers Families Earning Under $100,000 Every Year

All About Kelly Mcginnis | Family | Biography

WHO confirms 80 cases of Monkeypox in 11 countries

First Monkeypox Death in the United States Announced by CDC

Recommended

7 Simple and Effective Ways to Expand a B2B Business

3 years ago

How to Choose the Suitable Franchise That Fits Your Plans and Expectations

3 years ago

The Advantage of Social Media for Business

1 year ago

Business Obligations and Liabilities Every Owner Should Know

1 year ago

Topics

AI Amazon Business Cancer ChatGPT China Coach Covid-19 Crypto cryptocurrency Dylan Taylor Elon Musk Entrepreneur Feature Featured Featured-top Featured Home Federal Reserve florida Health Inflation joe biden Layoffs Los Angeles Lakers Marketing Marketing Expert Mental health Military Music NBA NFT Pandemic Real Estate Recession Research Revenue russia Shares shooting Silicon Valley Bank Technology Tesla Twitter Union united states
No Result
View All Result

Highlights

A New Perspective On Real Estate Investing: How Roy Hoss Purchased 77 Properties As A New Investor Without Using His Own Money

How G1 Capital Partners is Pioneering Change in Traditional Capital Firms

The High Cost of Prescription Drugs in the US: A Barrier to Medication Adherence

Meg Epstein: Shaping Nashville’s Renaissance Through Real Estate Vision

Mastering Slumber in the Skies: A Guide to Quality Rest on Long-Haul Flights

Unearthing the Mysteries of Pink Diamonds: Clues from an Ancient Supercontinent

Trending

Unveiling Hidden Secrets: Empower Yourself During Divorce with Tracy Coenen's Book
Author

Unveiling Hidden Secrets: Empower Yourself During Divorce with Tracy Coenen’s Book

by Mark Pierre
September 21, 2023
0

Did you know that more than half of Americans keep money secrets from their partners? Financial infidelity...

Dylan Taylor

How to Think Like a Futurist with Dylan Taylor

September 21, 2023
The Art and Science of Interior Design: Creating Spaces that Elevate the Human Experience

The Art and Science of Interior Design: Creating Spaces that Elevate the Human Experience

September 20, 2023
Roy Hoss

A New Perspective On Real Estate Investing: How Roy Hoss Purchased 77 Properties As A New Investor Without Using His Own Money

September 20, 2023
How G1 Capital Partners is Pioneering Change in Traditional Capital Firms

How G1 Capital Partners is Pioneering Change in Traditional Capital Firms

September 20, 2023
Menu
  • News
  • Business
  • Lifestyle
  • Sports
  • Marketing
Menu
  • Contact Us
  • Privacy Policy
  • Terms and Conditions
© 2023 US Insider. All Rights Reserved