Chancellor Kwasi Kwarteng (Photo: Anadolu Agency via Getty Images)
Kwasi Kwarteng will hold talks on Saturday morning with bank bosses to thrash out the details of a £40 billion bailout fund for energy firms, HuffPost UK can reveal.
Bank of England governor Andrew Bailey will also take part in the 11am meeting amid mounting concerns over soaring wholesale gas prices.
The government last week announced the Energy Markets Financing Scheme, which would see energy firms being loaned the cash they need to cover rising costs.
The Treasury said the fund, which will be provided by the Bank of England, will be available as “a last resort” to ensure firms can buy the energy they need, even if global prices continue to rise as a result of the war in Ukraine.
Kwarteng, the new channcellor, is preparing to deliver an emergency mini-budget next Friday which will contain the government’s plans for growing the economy.
He is expected to unveil the government’s plans to reverse the rise in national insurance and scrap the scheduled rise in corporation tax in an attempt to boost economic growth.
The chancellor is also under pressure to set out what help the government will give businesses to cope with rising energy bills.
Prime minister Liz Truss last week unveiled plans to cap the typical household’s energy bill at £2,500 a year until 2024.
Businesses have been promised “equivalent” support, but the full details of how the scheme will work have yet to be announced.
Downing Street also admitted this week that the business support package could be delayed, leading to warnings that could see thousands of firms go to the wall.
This article originally appeared on HuffPost UK and has been updated.