Business energy cap welcomed although may be 'too late' for some Moray firms
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A NEW package of support for businesses left struggling with the huge hikes in energy prices has been unveiled by the UK government.
The government have confirmed that through their Energy Bill Relief Scheme, prices will be capped for firms for the next six months.
As well as struggling businesses like in the hospitality sector receiving the support, the cap will also apply to hospitals, schools, charities, churches and other settings like community halls in Moray.
The scheme will apply to fixed contracts agreed on or after April 1, 2022 and apply to energy usage from October 1 to March 31, 2023. The UK government have committed to a review of the scheme within three months to give an early indication on whether further support will be needed beyond March next year.
Moray MP Douglas Ross said he “strongly welcomed” the measures announced.
He went on to say that the UK government have acted decisively and listened to the concerns from businesses and other organisations in Moray who have been left with hugely difficult choices with rising costs.
The measures aimed at providing financial respite for businesses follows on the heels of a support package for domestic consumers which has capped energy bills for households at £2500 for the next two years.
Mr Ross stated that the UK government are ensuring that residents, businesses and critical organisations across his Moray constituency have the support they need to get through the global cost-of-living crisis, rather than having to shut their doors.
He continued: “The UK government have acted decisively and listened closely to the concerns raised by businesses and other organisations across Moray and the whole country who have been struggling with ever-increasing energy bills.
“The huge package of support confirmed by the UK government gives businesses in Moray as well as places like hospitals, schools, churches and community halls reassurance and welcome relief that their bills will be capped for the next six months.
“The global cost-of-living crisis and Vladimir Putin’s barbaric invasion of Ukraine have meant costs have soared for them in recent months but the UK Conservative government have stepped up and showed that they are on their side over this difficult period.
“These organisations and businesses are at the heart of the community in Moray and it would have been devastating to see them close their doors.
“While ultimately they will still be facing many tough challenges in the coming months, this will give them some breathing space as they look to make their businesses a success or keep vital local services operating at full capacity.
“This support will be delivered automatically but households and businesses who have any questions on the schemes being delivered should not hesitate to contact myself and my office where we are ready to help anyone who requires assistance.”
However, Moray SNP MSP Richard Lochhead said that the measures had come "too late" for many businesses already forced to shut due to skyrocketing energy bills.
He said: “The measures announced by the UK government will relieve some of the anxiety many businesses in Moray have been feeling for months.
“But the reality is, for many businesses this announcement has come too late having already closed their doors. And it leaves the rest wondering what will happen in six months, when the temporary cap is lifted and businesses will face a terrifying cliff edge.
“Even with this new temporary cap costs will remain unaffordable for many small businesses in Moray who are being stretched in all directions.
“Certainly many that I’ve spoken to will still be extremely anxious, because although a £10,000 bill is better than a £20,000 bill the fact remains that even with this temporary cap costs have skyrocketed and the risk of businesses closing their doors is real.
“Businesses need clarity and long-term certainty – the plans announced by the UK government fail to deliver either of those things.
“It is beggars belief that the UK government are refusing to apply new windfall taxes to companies making eye-watering profits to cover the cost of support schemes, choosing instead to put the burden on ordinary tax payers.”
The announcement can be read here: https://www.gov.uk/government/news/government-outlines-plans-to-help-cut-energy-bills-for-businesses
