Energy package will 'fall short' of what's needed for Shropshire businesses
The Government’s new energy support package will ‘fall short’ of what is required for many struggling companies, business leaders have said.
Businesses will still receive some help with their energy bills for another year, but the Government has significantly reduced the amount of support they will get.
The current scheme is set to cost the Government about £18 billion over just six months, compared with £5.5 billion over a whole year for the new plan.
Ruth Ross, Shropshire Chamber’s deputy chief executive, said: “We know that many local businesses have been fighting for their survival for months, and rising energy costs have fast become the tipping point.
“While we welcome the 12-month duration of this latest support package, its value is nowhere near far enough and means that for some Shropshire firms, energy will now be a cost too far.”
She said the Chamber network understood that the Government had to consider public finances, but insisted that any support package, short or long term, should be right for business.
“The wrong type of support simply dents business confidence, and will mean the Government having to revisit its package.”
She added: “This is not about giving a handout to failing firms. It is about investing in our businesses, many of whom are confident about the strength of their order-books despite being hammered by eye-watering energy costs. Shropshire’s economy will not be able to grow if our businesses are in decline.”
Shevaun Haviland, director general of the British Chambers of Commerce, said: “Alongside an energy support package, we need an energy support strategy to get businesses on the right track to longer term efficiency."
The chamber suggested ensuring effective competition in the business energy market for non-domestic contracts by extending OFGEM’s regulatory powers to guarantee firms access competitive fixed rate contracts, and energy providers move swiftly to pass on wholesale price reductions.
The chamber said the Government should bring forward ambitious plans to enable more renewable and sustainable energy production across the UK.
A the Government should launch a national campaign with support initiatives for businesses to drive down current consumption through energy efficiency measures, such as green grants and tax incentives.
