PM refuses to budge on benefit cuts despite taxpayers footing bill to support US-owned CO2 producer

In a deal brokered by Business Secretary Kwasi Kwarteng, the UK Government will provide "limited financial support" towards CF Fertilisers' running costs.

PM refuses to budge on benefit cuts despite taxpayers footing bill to support US-owned CO2 producer

Image: The CF Fertilisers plant in Billingham, Cleveland

Taxpayers will help pay for the operating costs of a US-owned fertiliser manufacturer amid the ongoing energy crisis – just weeks after the government announced it was cutting Universal Credit and raising National Insurance contributions.

In a deal brokered by Business Secretary Kwasi Kwarteng, the UK Government will provide “limited financial support” towards CF Fertilisers’ running costs to ensure the supply of CO2 for the food sector continues.

This comes despite Mr Kwarteng admitting the combination of rising gas prices and the looming £20 a week cut to Universal Credit meant hard-pressed families could face a “difficult winter”.


Some 4.4 million households on Universal Credit are poised to see their energy bills rise significantly in October – the same month the uplift to the benefits payment ends, the Resolution Foundation think tank has calculated.

However, the Prime Minister has refused to back down over planned benefits cuts insisting the government’s approach was “the best way forward”.


When asked if the decision to reduce the benefit was final, Boris Johnson told Sky’s Beth Rigby: “What we would much rather see is people getting paid well in high wage and high skilled jobs…”

The agreement with CF Fertilisers, which produces around 60% of the UK’s CO2, will be in place for three weeks while the “market adapts” to the surge in global gas prices, according to the Department for Business, Energy and Industrial Strategy (Beis).

Beis officials said the “exceptional short-term arrangement” with the American business would allow the company to immediately restart operations and produce CO2 at its Billingham plant in Teesside.

There had been fears that without action, the UK could face shortages on supermarket shelves.

PM refuses to budge on benefit cuts despite taxpayers footing bill to support US-owned CO2 producer

Energy crisis: The blame game has begun – but are some of the claims just hot air?

Ian Wright, chief executive of the Food and Drink Federation, had warned that shoppers may notice products missing “in about 10 days” if a solution was not found.

Speaking to Sky News before the deal was announced, the Prime Minister looked to reassure the public by insisting “Christmas is on” following concerns within the poultry industry about turkey supplies.

CO2 is injected into the packaging of perishable foods such as meat and salads to inhibit the growth of bacteria, typically prolonging the shelf life of products such as beef steak by around five days.

The gas is also used to stun animals prior to slaughter, and is deployed as a coolant for medicines and vaccines in the NHS, and likewise in nuclear programmes.

Meanwhile, the turbulence in gas prices could potentially see more energy suppliers go to the wall while also placing additional financial burden on the UK’s poorest households.


Mr Kwarteng has vowed to protect consumers from bill hikes by keeping in place the energy price cap as he ruled out taxpayer bail-outs for companies which have been “badly run”.

Emma Pinchbeck, chief executive of trade association Energy UK, said the immediate concern needed to be about helping energy companies through “a really unprecedented time”.

Ministers and industry figures have said there is no risk of the lights going out this winter, with energy supplies secure despite the rising costs.

Internet Explorer Channel Network
News Related

OTHER NEWS

South Indian Bank reports net loss of Rs 187 crore in Q2 on higher bad loans

Private sector South Indian Bank (SIB) on Thursday reported a net loss of Rs 187 crore for the September quarter, hit by higher bad loans. The Kerala-based lender had posted ... Read more »

Zilvervloot savings account 2.0 also sinks due to low interest rates

Most people over 40 are familiar with the Zilvervloot. Between 1958 and 1992 a very popular savings account that (grand)parents opened for their (grand)children. It was part of the Youth ... Read more »

TV ad volumes surge on the back of festive season; FMCG among top advertisers

Advertising volumes on television saw healthy growth in the July-August-September quarter registering 461 million seconds of advertising which is the highest this year, according to Broadcast Audience Research Council (BARC) India ... Read more »

Amazon to increase annual Prime membership fee to Rs 1,499, monthly fee at Rs 179

Amazon is set to increase the price of the annual membership of its Prime programme in India by 50 per cent to Rs 1499. Monthly and a quarterly fee of ... Read more »

Driver was behind wheel at time of Texas Tesla crash, NTSB says

Both the driver and a passenger were in the front seats with belts buckled, the NTSB found. Texas authorities previously said that "no one was driving the car." Read more »

Google is still 'all in' on health care: Chief health officer Karen DeSalvo

Alphabet's Google is “still all in on health,” according to its chief health officer, despite the demise of its recent attempt at a formalized business unit for the health-care sector. ... Read more »

Leiden company gets millions for snake venom medicine

VarmX’s drug consists of a protein inspired by the venom of the Australian brown snake, the second most venomous species in the world. Researchers at the biotech company discovered which ... Read more »

AutoNation shares hit new all-time high after reporting record quarterly earnings

AutoNation's stock reached a new all-time record of more than $130 a share Thursday after the nation's largest seller of new cars reported its sixth consecutive quarterly earnings record. AutoNation ... Read more »

L&T's ESG thrust aims to achieve carbon, water neutrality in less than two decades

L&T, along with its subsidiaries, aims to achieve ‘water neutrality’ by the year 2035. Large companies in India have been quick to embark on the road to sustainability and the ... Read more »

Tech facilitates Ease of Doing Business; Online building permission system in all cities by March 2022: Housing Secretary

Representative image Stating that technology will play a pivotal role in building the future of the real estate industry and help facilitate ‘Ease of Doing Business’, Housing and Urban Affairs ... Read more »

Facebook's Oversight Board releases quarterly transparency report, says company wasn't ‘forthcoming'

Representative image Facebook Inc.’s Oversight Board on October 21 published its quarterly transparency report and said that the social media giant had not been ‘fully forthcoming’ with the board on ... Read more »

Hainan consumer sector up 31.9% from January to September

The main factor contributing to the increase in retail sales was value-added consumer goods Read more »

East West Consolidated September 2021 Net Sales at Rs 57.75 crore, up 52.27% Y-o-Y

Reported Consolidated quarterly numbers for East West Holdings are: Net Sales at Rs 57.75 crore in September 2021 up 52.27% from Rs. 37.92 crore in September 2020. Quarterly Net Profit ... Read more »

Tinna Rubber an Consolidated September 2021 Net Sales at Rs 54.62 crore, up 76.4% Y-o-Y

Reported Consolidated quarterly numbers for Tinna Rubber and Infrastructure Ltd. are: Net Sales at Rs 54.62 crore in September 2021 up 76.4% from Rs. 30.96 crore in September 2020. Quarterly ... Read more »

Indiamart Inter Consolidated September 2021 Net Sales at Rs 182.40 crore, up 11.76% Y-o-Y

Reported Consolidated quarterly numbers for Indiamart Intermesh are: Net Sales at Rs 182.40 crore in September 2021 up 11.76% from Rs. 163.20 crore in September 2020. Quarterly Net Profit at ... Read more »

Sasken Tech Consolidated September 2021 Net Sales at Rs 108.65 crore, up 1.28% Y-o-Y

Reported Consolidated quarterly numbers for Sasken Technologies are: Net Sales at Rs 108.65 crore in September 2021 up 1.28% from Rs. 107.28 crore in September 2020. Quarterly Net Profit at ... Read more »

IDBI Bank Consolidated September 2021 Net Interest Income (NII) at Rs 1,860.03 crore, up 9.21% Y-o-Y

Reported Consolidated quarterly numbers for IDBI Bank are: Net Interest Income (NII) at Rs 1,860.03 crore in September 2021 up 9.21% from Rs. 1703.2 crore in September 2020. Quarterly Net ... Read more »

IDBI Gold ETF Consolidated September 2021 Net Interest Income (NII) at Rs 1,860.03 crore, up 9.21% Y-o-Y

Reported Consolidated quarterly numbers for IDBI Gold ETF are: Net Interest Income (NII) at Rs 1,860.03 crore in September 2021 up 9.21% from Rs. 1703.2 crore in September 2020. Quarterly ... Read more »

Tejas Networks Consolidated September 2021 Net Sales at Rs 172.78 crore, up 56.99% Y-o-Y

Reported Consolidated quarterly numbers for Tejas Networks are: Net Sales at Rs 172.78 crore in September 2021 up 56.99% from Rs. 110.06 crore in September 2020. Quarterly Net Profit at ... Read more »

Reliance shareholders approve appointment of Aramco Chairman Yasir Al-Rumayyan on board

Shareholders of Reliance Industries have approved the appointment of Saudi Aramco Chairman Yasir Al-Rumayyan on the company board, with less than 2 per cent of votes cast against the proposal. ... Read more »

Angel Broking Consolidated September 2021 Net Sales at Rs 527.34 crore, up 70.19% Y-o-Y

Reported Consolidated quarterly numbers for Angel Broking are: Net Sales at Rs 527.34 crore in September 2021 up 70.19% from Rs. 309.86 crore in September 2020. Quarterly Net Profit at ... Read more »

The existing model of capitalism has run its course — Putin

© Dmitry Feoktistov/TASS The existing model of capitalism has run its course – Putin Read more »

Deep Polymers L Consolidated September 2021 Net Sales at Rs 43.20 crore, up 423.38% Y-o-Y

Reported Consolidated quarterly numbers for Deep Polymers Limited are: Net Sales at Rs 43.20 crore in September 2021 up 423.38% from Rs. 8.25 crore in September 2020. Quarterly Net Profit ... Read more »

20 Microns Consolidated September 2021 Net Sales at Rs 162.28 crore, up 26.15% Y-o-Y

Reported Consolidated quarterly numbers for 20 Microns are: Net Sales at Rs 162.28 crore in September 2021 up 26.15% from Rs. 128.64 crore in September 2020. Quarterly Net Profit at ... Read more »

Cramer calls Tesla's quarterly results 'perfect,' sees stock going to $1,000

Jim CramerScott Mlyn | CNBC CNBC's Jim Cramer said Thursday that Tesla's third-quarter earnings were “perfect,” predicting the stock will eventually reach $1,000 per share. Read more »

VST Standalone September 2021 Net Sales at Rs 360.86 crore, up 20.15% Y-o-Y

Reported Standalone quarterly numbers for VST Industries are: Net Sales at Rs 360.86 crore in September 2021 up 20.15% from Rs. 300.33 crore in September 2020. Quarterly Net Profit at ... Read more »

Indiamart Inter Standalone September 2021 Net Sales at Rs 181.60 crore, up 12.24% Y-o-Y

Reported Standalone quarterly numbers for Indiamart Intermesh are: Net Sales at Rs 181.60 crore in September 2021 up 12.24% from Rs. 161.80 crore in September 2020. Quarterly Net Profit at ... Read more »

Kabra Extrusion Standalone September 2021 Net Sales at Rs 83.10 crore, up 20.3% Y-o-Y

Reported Standalone quarterly numbers for Kabra Extrusion Technik are: Net Sales at Rs 83.10 crore in September 2021 up 20.3% from Rs. 69.08 crore in September 2020. Quarterly Net Profit ... Read more »

IDBI Div 95 Standalone September 2021 Net Interest Income (NII) at Rs 1,853.65 crore, up 9.35% Y-o-Y

Reported Standalone quarterly numbers for IDBI Div I NIT 95 are: Net Interest Income (NII) at Rs 1,853.65 crore in September 2021 up 9.35% from Rs. 1695.13 crore in September ... Read more »

East West Standalone September 2021 Net Sales at Rs 2.26 crore, up 97.88% Y-o-Y

Reported Standalone quarterly numbers for East West Holdings are: Net Sales at Rs 2.26 crore in September 2021 up 97.88% from Rs. 1.14 crore in September 2020. Quarterly Net Loss ... Read more »

Supreme Petro Standalone September 2021 Net Sales at Rs 1,190.76 crore, up 71.57% Y-o-Y

Reported Standalone quarterly numbers for Supreme Petrochem are: Net Sales at Rs 1,190.76 crore in September 2021 up 71.57% from Rs. 694.06 crore in September 2020. Quarterly Net Profit at ... Read more »

Just Dial Standalone September 2021 Net Sales at Rs 155.98 crore, down 6.89% Y-o-Y

Reported Standalone quarterly numbers for Just Dial are: Net Sales at Rs 155.98 crore in September 2021 down 6.89% from Rs. 167.53 crore in September 2020. Quarterly Net Profit at ... Read more »

20 Microns Standalone September 2021 Net Sales at Rs 137.31 crore, up 17.78% Y-o-Y

Reported Standalone quarterly numbers for 20 Microns are: Net Sales at Rs 137.31 crore in September 2021 up 17.78% from Rs. 116.59 crore in September 2020. Quarterly Net Profit at ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic