Energy crisis 'is not going away any time soon', Highland business leader warns
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North business leader David Richardson has warned that the energy crisis "is not going to go away any time soon" and that much more needs to be done by the UK government to support smaller firms.
He was speaking after Prime Minister Liz Truss announced measures to limit energy bill rises – a move that was met with a sense of relief, although concerns remain over the number of people likely to face fuel poverty this winter.
Ms Truss announced that the typical household energy bill will be capped at £2500 annually for two years from October 1. It had been due to rise from £1971 to £3549 in October.
She also said businesses will get a package for six months which will provide equivalent support. After the six-month period, further support will be targeted at “vulnerable industries”.
The Federation of Small Businesses (FSB) has published a new report, Out in the Cold, which looks into the impact of soaring energy costs on UK small businesses and proposes solutions.
Mr Richardson, the FSB’s Highlands and Islands development manager, said: “I have been in constant conversation with very worried members right across the Highlands and Islands of late, and 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.
"Caithness and Sutherland businesses 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 that 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.”
Ms Truss said: "Decades of short-term thinking on energy have failed to focus enough on securing supply – with Russia’s war in Ukraine exposing the flaws in our energy security and driving bills higher. I’m ending this once and for all.
"I’m acting immediately so people and businesses are supported over the next two years, with a new Energy Price Guarantee, and tackling the root cause of the issues by boosting domestic energy supply.
"Extraordinary challenges call for extraordinary measures, ensuring that the United Kingdom is never in this situation again."
