Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent discussions his Department has had with the (a) Bank of England and the(b) wider banking sector on support for businesses experiencing temporary cash flow problems due to energy costs.

The Chancellor has met frequently with the Bank of England Governor, Andrew Bailey and continues to engage with the Bank and other commercial actors.

To address extraordinary liquidity requirements faced by energy firms from high and volatile energy prices, HM Treasury has announced the £40 billion Energy Markets Financing Scheme, delivered with the Bank of England,.

The scheme will improve resilience in energy and financial markets, and the economy. To deliver the scheme, there will be a 100% guarantee to commercial banks covering additional lending extended to firms. The scheme will be designed to be used as a last resort, with pricing and conditions reflecting this.

Last week, the Government also announced details of the Energy Bill Relief Scheme to protect businesses from the spiralling costs of energy by providing a discount on wholesale gas and electricity prices over the next six months.

A parallel scheme, based on the same criteria and providing comparable support, but recognising the different market fundamentals, will also be established in Northern Ireland.