Jeremy Hunt will halve financial support on energy bills within MONTHS

The Chancellor Jeremy Hunt is set to announce a new support package for businesses which is half of the £40billion scheme already in place.

From next April, financial support helping businesses cope with sky high energy bills will be cut to £20billion according to Steven Swinford, Political Editor of The Times.

The editor says the Government support slashing comes amid concerns over taxpayer exposure.

He tweeted: "Jeremy Hunt is poised to halve financial support on energy bills for businesses amid concerns about taxpayer exposure.

“Govt poised to announce package worth less than £20billion - half the current level - from April of next year."

The Government’s energy bill relief package is set to finish on March 20 but the Chancellor said he had assessed plans to continue with support.

The current scheme involves a government offer to discount on unit prices for energy used by firms.

This is set at £75 a megawatt hour for gas and £211 a megawatt hour for electricity.

Mr Swinford added: "Ministers had been planning to focus support on most vulnerable businesses - hospitality, retail, leisure and high energy users.

“But energy companies have said they just don't have the data to easily delineate between different sectors. Government now looking at a lower universal offer."

The initial scheme covered all “non-domestic” contracts such as businesses, charities and public sector organisations like schools and was set to end for all firms from April, before shifting to targeted aid.

Mr Hunt said his announcement would come “either just before or just after” Christmas.