News / Business West
Business leaders call for more detail on government’s energy price guarantee
With companies facing “unprecedented” costs, business leaders are calling on the government to provide more detail on the energy price guarantee.
Skyrocketing bills and a record high on inflation have come in the wake of Brexit and the pandemic to take their toll on businesses across Bristol and beyond.
Prime minister Liz Truss has confirmed there will be energy bill support for consumers – with the energy price cap to be fixed at £2,500 a year for a typical home – and stated there will be an “equivalent guarantee” for businesses for six months.
But Business West, which represents companies across the Bristol region, says more detail is needed on how businesses will be supported, with a warning that “viable businesses will be in serious jeopardy if there is a cliff edge to the support”.
Warnings on the potential consequences for businesses come as consumer prices index inflation rose by 9.9 per cent in August and producer price inflation figures remain at record highs of 20.5 per cent.
Claire Ralph, policy manager at Business West, said: “Business West welcomed the new government’s energy price guarantee for households and the cap also applying to businesses and other non-domestic consumers of energy.
“Five days on, we are still waiting to see the details of how this will function for businesses in our region who are facing unprecedented costs of doing business. Given the guarantee was supposed to be in place for October 1, unless the government urgently publishes the details, businesses will be unable to plan their operations through the winter months.
“Business West remains concerned that the guarantee for businesses is only in place for six months, which is far too short a time period unless the energy market returns to normal conditions by the spring. Otherwise, viable businesses will be in serious jeopardy if there is a cliff edge to the support. It remains a very worrying time for firms in the South West.
“We will publish details to help businesses interpret what the guarantee means for them when we can.”
Main photo: Sarah Dalton
Read more:
- Warning energy crisis could cause ‘irreversible damage’ to high street
- Decline in business activity across the South West
- Lucy & Yak to open permanent shop in Bristol
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