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Energy bailout will benefit corporate giants who don’t need it, MPs warn

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MPs have raised concerns that the government’s energy bailout for businesses will see corporate giants handed huge discounts they do not need.The government on Wednesday announced a package of support including a cap that will halve the unit price paid for energy from 1 October to help companies, charities and public sector organisations, including schools, get through the winter.

One estimate puts the cost of the scheme at £25bn.However, fears are growing in Westminster that the blanket nature of the bailout will see huge businesses who could stomach the rise in energy costs this winter handed discounts they do not need.Darren Jones, the Labour MP who chairs the business, energy and industrial strategy select committee, said: “Capping the price for all businesses is a waste of taxpayers’ money, which should be targeted at those which need it the most.

Why should British taxpayers collectively get into even more debt to hand over public funds to Amazon?”Labour MP Charlotte Nichols said: “The government shouldn’t be profligate with taxpayers’ money and, frankly, a price cap set at the same rate for all businesses is just a huge corporate handout to businesses that won’t need it, rather than targeting support at those that will.”Carla Denyer, co-leader of the Green party, said the scheme needed to prioritise energy efficiency and be “more targeted than just a blanket cap on wholesale energy costs”.Denyer said: “Many small businesses will need help with reducing their energy costs.

We would provide companies with grants towards the new energy-efficient equipment.“For larger businesses who can afford it, I would like to see government energy bill support conditional on detailed and credible plans to improve their energy

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