Business leaders in Harrogate say Liz Truss’s energy plan is ‘too little too late’
Businesses will have bills capped for 6 months
Last updated 8th Sep 2022
Harrogate business leaders have warned that Liz Truss’s energy plan is “too little too late” to save struggling firms from closure.
The new prime minister today announced that annual energy bills for households will be frozen at £2,500 until 2024 as part of a huge support package which could cost up to £150 billion.
However, the scheme is less generous for businesses than had been expected as their bills will be capped for six months – a shorter period than many had hoped for.
Reacting to today’s announcement, David Simister, chief executive of Harrogate District Chamber of Commerce, said: “I welcome the fact the prime minister has included businesses in her support package, but for some it will be too little too late.
“She could also have reduced VAT on energy bills, but didn’t.
“Businesses have had it incredibly tough for more than two years, and it isn’t going to get any easier. Surging energy costs are just one of the pressures facing businesses.
“When Ms Truss recently came to Harrogate, members of Independent Harrogate challenged her about business rates.
“Her response was that she would review them. This she needs to do urgently, along with looking at VAT, fuel duty, National Insurance and corporation tax.”
Sara Ferguson, chair of Harrogate BID, added: “As the owner of a town centre restaurant, one that uses a lot of gas and electricity, I don’t think the support being offered goes far enough, or long enough.
“It pains me to say this, but even with the energy price cap some business will simply not be able to pay higher bills.
“It is going to be another tough time for the high street.”
Energy prices have soared this year, largely due to the conflict in Ukraine which has reduced supplies of gas.
This has driven up the UK energy price cap which sets the highest amount suppliers are allowed to charge households and had been due to rise from £1,971 to £3,549 in October.
Unlike households, small businesses are not covered by the cap and Harrogate district MPs were last month warned that many firms would soon reach a “tipping point”.
Speaking in the commons today, Ms Truss said she was “acting immediately” in her premiership and that the support for businesses may be extended for vulnerable sectors after the six-month period.
“Extraordinary challenges call for extraordinary measures, ensuring that the United Kingdom is never in this situation again,” Ms Truss said.