Alison Thewliss, the SNP Shadow Chancellor has commented on Jacob Rees Mogg’s energy price cap for businesses.
The BEIS Secretary has announced a six month cap on energy prices for businesses. However, firms expect prices to rise significantly, even with the mitigation package, and many expect an extremely challenging winter.
Food and drink, tourism and hospitality businesses have all struggled over the course of the pandemic, and astronomical energy bills will be the final straw for some.
Commenting, Alison Thewliss MP said:
“The UK Government has come up short once again in their support for businesses across the country. As has been the case throughout this crisis, new measures have been introduced which are simply not enough – while businesses continue to beg for more support. While the six-month support package may help in the short term, the long-term worry for businesses remain.
“I met with several businesses in the Glasgow Central constituency during recess, who spoke to me of their concerns about the months ahead. They felt as though they are being forgotten about and left to fend for themselves in these darkest of times. The cost of the energy crisis comes on top of increased material costs, supply chain issues and labour shortages.
“One business in Dalmarnock, Calder Millerfield spoke to me of their profound worry for the year ahead – with soaring energy bills hitting them extremely hard. Their electricity has increased from £160,000 to £712,000, totalling a devastating 345% rise.
“They have been serving the community and employing local people for 60 years, but now face the real prospect of closing their doors for the last time. This business will be one of many businesses across the UK who face unprecedented uncertainty this winter.
“The UK Government proposals are a sticking plaster on a fundamentally broken energy market. Any help is welcome, but prices are already beyond the reach of many businesses and third sector organisations. The six-month cliff edge gives only temporary reassurance – a permanent fix is urgently required.
“What Scotland needs is the full powers of independence to create a wealthier, happier and fairer nation for every Scottish citizen. During the most distressing of times, we need the full range of financial levels to support our people and businesses.