Sutherland MP in energy bailout call amid 'ghost town' fears over impact on businesses of massive price hikes
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FEARS of north high streets turning into "ghost towns" due to the impact of business energy bill hikes of up to 400 per cent have prompted a call for action from a local MP.
Since businesses are not covered by the Ofgem energy price cap, many are expecting to see their bills skyrocket fourfold in the coming months.
Some have already made clear such increases are unsustainable without some form of support with a number even understood to be considering winter shutdowns.
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MP Jamie Stone is demanding the Government rescue hundreds of small local businesses in Caithness, Sutherland and Easter Ross from soaring energy bills.
The suggested Liberal Democrat rescue package would offer grants up to £50,000 to help small businesses cope, giving them a lifeline to keep their doors open.
The plans would benefit 1639 small and medium-sized businesses in the constituency from family-owned high street shops to hairdressers.
“Local shops, cafes and restaurants that survived through the coronavirus pandemic, could now be taken down by soaring energy costs and forced to close their doors unless the Government steps up urgently." - Jamie Stone
Under the proposed scheme, small businesses would be able to apply for Government grants covering 80 per cent of the increase in their energy bills for one year, up to a maximum of £50,000. Nationally the proposals would help 1.4 million small businesses across the UK.
The party is also calling on the new Prime Minister to introduce laws to support families and businesses with spiralling energy costs as soon as Parliament returns next week.
The scheme would cost an estimated £10 billion and could be met by reversing the Conservatives’ planned tax cuts for big banks, which he says are seeing their profits grow with rising interest rates. That would include cancelling the Government’s cut to the Bank Surcharge that is due to take effect in April 2023 and restoring the Bank Levy to 2015 levels, raising £10.6 billion over the next four years.
Stone said: “High streets across the Highlands risk being devastated by spiralling energy costs and turned into ghost towns, but the Conservatives don’t seem to get it, or even care.
“Local shops, cafes and restaurants that survived through the coronavirus pandemic, could now be taken down by soaring energy costs and forced to close their doors unless the Government steps up urgently.
“We need this energy bailout now to save our high streets, rescue small businesses and keep prices down for local families.
“We’ve known this hike was coming for months and the Government has done nothing.
“We cannot waste more time. The new Conservative Prime Minister must act immediately to protect families and small businesses in the Far North as soon as Parliament returns.”
