Businesses appeal for government support following sanctions

The CBI is pleading for ministers to comprehend the “looming crisis” in domestic and business energy bills. They are requesting a fast-tracking of significant policy issues surrounding energy, supply chains and cybersecurity, and help for companies to invest.

The organisation represents 190,000 businesses employing seven million people.

Tony Danker, director general of the CBI, said the UK government needs “to confront the economic consequences of unwinding from Russia”.

“This most obviously includes energy independence, significant cost inflation flowing from energy and other commodity costs, anticipated cybersecurity attacks, and dampening climate for investment”.

Whilst the CBI says companies “fully support sanctions despite their cost”, the economic fallout is likely to be significant.

Companies like BP, Shell, PwC and KPMG have said they will pull out of Russia. British manufacturers who have announced paused exports there include Jaguar Land Rover and Diageo, the Smirnoff vodka maker.

The resultant threat of rising costs has urged the CBI to call for renewable energy solutions, as well as pointing to the prospect of more prolific domestic oil and gas use.

Danker warned the government they will need to “move immediately towards energy efficiency in homes to dampen down demand”.

The CBI suggested that the government must identify new trading partners to guard against a vulnerable supply chain of commodities.

New investment tax deductions could also “signal that the UK can continue to benefit from tailwinds in the economy and not be put off course by Russia’s actions,” Danker said.

On 9 March Kwasi Kwarteng, Secretary of State for Business, Energy and Industrial Strategy, told the House of Commons: “We fully intend, and we must, end our dependency on all Russian hydrocarbons.

“In the meantime, we need more investment in North Sea oil and gas production as we make the move to cheaper and cleaner power.

"The Prime Minister has also confirmed that the government will set out an energy strategy to explain the UK’s long-term plans for greater energy security, including both renewable and nuclear power”.