Under the plan, electricity prices for UK businesses will be capped at £211 per megawatt hour, and gas prices at £75 per megawatt hour.

The plan comes into action from 1 October and is expected to cost tens of billions of pounds.

The savings will be first seen in October bills, which are typically received in November.

As well as relieving pressure on businesses it is hoped the move could take the heat out of looming price rises for basic building materials.

The cap will apply to fixed contracts agreed on or after 1 April 2022, as well as to deemed, variable and flexible tariffs and contracts.

Director of Operations for the Civil Engineering Contractors Association Marie-Claude Hemming said: “This is welcome news for all UK businesses, and CECA members will be relieved at the certainty capping energy costs will bring over this winter.

“We believe that if the new administration is to successfully unleash economic growth, it must not only adopt such fire-fighting measures as an energy cap for businesses and consumers but must redouble its efforts to get spades in the ground in infrastructure projects up and down the country.

“Harnessing investment in infrastructure is the best means of delivering a better future for businesses and communities in all parts of the UK.

“We look forward with interest to the planned ‘fiscal event’ planned by the new Chancellor later this week, and call on the new Prime Minister Liz Truss to go for growth through expediting infrastructure schemes, so that CECA members can play their role in creating a resilient and prosperous UK plc in the months and years ahead.”