Govt urged to end energy woes

Sectors warn about factory closures, price rises if crisis cannot be resolved

The United Kingdom's government is being urged to take action immediately as the ongoing global energy crisis threatens to put major suppliers out of business.

British Business Secretary Kwasi Kwarteng held talks with industry leaders last week, and officials will continue discussions with businesses this week.

Manufacturing sectors have called for a price cap as wholesale prices soar, but the talks with the government on Friday failed to reach a solution.

Business leaders have warned that high energy prices would force some factories to close and push up the cost of goods.

Dave Dalton, chief executive at British Glass, told the BBC's Today radio program that the meeting had started the process of asking for support.

But industry concerns have escalated after the Treasury denied being in any talks about the crisis.

Kwarteng said in a BBC television interview on Sunday that he was working closely with Chancellor of the Exchequer Rishi Sunak to help the industry, but a senior Treasury source told the PA news agency that "no such talks" have taken place.

Dalton said it was "very alarming to hear the Treasury are making denials over the approach", and said "immediate action" was needed.

Earlier, Dalton told the Sunday Times that companies were only "days" from having to close temporarily. He described Friday's meeting as "an introductory one", and that it was hoped dialogue would be extended.

Mounting tensions

Home Office Minister Damian Hinds denied the business secretary had been lying that talks between government departments were happening, telling Sky News "these unnamed sources stories come out from time to time", and that "government ministers talk to each other the whole time".

The Financial Times said tensions were mounting inside government as Sunak seeks to keep a close control on spending ahead of a review later this month.

Speaking on Sunday, Kwarteng denied reports that he had asked the Treasury for billions of pounds in support for businesses. He told Sky News that he did not rule out a price cap for businesses, and added: "What I am very clear about is that we need to get them through this situation, it's a very difficult situation."

Gareth Stace, director-general of UK Steel, told The Financial Times that Prime Minister Boris Johnson must "intervene directly to ensure that the energy crisis does not become an industry crisis".

The paper said ministers are being urged to introduce winter cost containment measures to ensure factories can continue to operate.

Business Minister Lee Rowley was due to meet industry representatives on Monday, and is meeting with steel bosses on Tuesday, said the BBC.

Household energy tariffs increased this month, and the UK's energy regulator Ofgem warned there would be another significant rise in costs in April.