COST OF LIVING CRISIS: Inclusion of financial support for struggling businesses is welcomed in the Highlands
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A caution welcome has been given to the inclusion of business support to tackle soaring energy bills but more must be done to help, according to a leading business group in the Highlands.
New Prime Minister Liz Truss announced earlier today that energy bill rises for all households will be limited for two years as she tries to prevent widespread hardship.
A typical household energy bill will be capped at £2,500 annually until 2024.
A £400 energy bill discount announced previously by the Government will be retained and green levies costing £150 will be temporarily removed.
That means that average household bills will remain at roughly their current level of £1,971 - although still much higher than 12 months ago.
There will also be equivalent help forthcoming for businesses but this will be limited to six months but no specific details have been released yet.
The huge support scheme could cost up to £150bn.
Ms Truss refused to put a total on the cost to the nation, saying "extraordinary times call for extraordinary measures".
David Richardson, the Federation of Small Businesses’ Highlands and Islands development manager, is relieved that businesses have been included in the measures after speculation they could miss out earlier in the week.
He said: “I have been in constant conversation with very worried members right across the Highlands and Islands of late.
"There’s no doubt that the inclusion of businesses in the UK Government’s plans to help on energy costs will bring a sigh of relief to the many pushed to the brink by the crippling energy bills, let alone the increases coming down the tracks towards them.
Businesses desperately need a lifeline that will protect them, the jobs they provide and the communities they support, for all are at risk.
"However, we will need to see more detail added to today’s headline announcements before we can properly judge the value of what is being offered.
"Businesses in Badenoch and Strathspey need to know what it all means for them in practice.
“Clearly, this energy crisis is not going to go away any time soon, and FSB argues that much more needs to be done by the UK Government to support smaller businesses, including giving them the same two-year cap received by domestic consumers – businesses need certainty and six months is not enough.
"We also want to see the forthcoming hike in National Insurance contributions reversed, and VAT, especially on non-domestic energy, and fuel duty cut.
"Energy companies should also be prevented from disconnecting businesses who can’t pay over the winter, and from charging disproportionate up-front prices.
“Locally, we want the Scottish Government to use the underspend in Covid business support grant money to support businesses until what we hope will be an easier spring – a really tough winter awaits.”
The Federation of Small Businesses has today published a new energy report, ‘Out in the Cold’, which identifies the problems and proposes solutions to the energy price crisis facing the country as a whole.
UK small businesses warn they can not wait in limbo for three months
