Businesses still waiting for more details on support with energy bills

Seb Slater, executive director of Shrewsbury Business Improvement District (BID), said it is lobbying the Government to do more to help firms facing soaring costs.

It comes after Prime Minister Liz Truss announced a six-month scheme to support businesses over the winter.

Further targeted support for specific industries like hospitality is set to follow after that, with a review in three months to decide which sectors should benefit.

Mr Slater said: "We are waiting to see the detail regarding the proposed support for businesses, but we are joining BIDs from across the country to strongly lobby the Government to do more to help businesses deal with such soaring costs – which are not limited to energy bills.

"We are campaigning for a reduction in the VAT headline rate from 20 per cent to 12.5 per cent, and business energy bills from 20 per cent to five per cent, along with 100 per cent business rate relief until March 31 2023 and energy rate relief on all business energy bills.

"We are entering tough times for businesses and we will continue to work on behalf of our members to ensure Shrewsbury businesses get the support they deserve."

The Federation of Small Businesses welcomed the Government's help but said the announcement was "sparse on detail".

Shevaun Haviland, director general of the British Chambers of Commerce, added: “The BCC welcomes this quick and positive intervention from Government. It is clear the new Prime Minister has listened to firms and is providing a strong package of support for business, equivalent to the crucial support to consumers.

“We welcome the breadth of the offer to all non-domestic energy users with businesses, charities and public sector organisations to be included.

“The price cap is a measure the BCC has previously called for. It will give businesses some financial certainty on the outlook for the next six months. It is crucial that there is a review at three months so there is time to plan for the end of the six-month period.

“However, given the other challenges still facing business on labour shortages, supply chain disruption, and rising raw material costs, it is unlikely that we will see greater investment from business in the short term.

“If we are to truly revitalise our economy for the difficult months ahead then there must be a clear long-term plan that gives firms the confidence to grow.”