Whoever becomes the next Prime Minister we can be confident they will put in place further financial measures to support households confronted by unprecedented rises in energy costs. The Government has already announced a support package of £37 billion which is being rolled out to all energy bill payers, with a specific focus on the elderly, disabled and those on means tested benefits. Clearly more help is needed, not only for the most vulnerable, but also for all low and middle income households.
There has been no help so far for small and medium sized businesses. These businesses are already struggling with the full impact of soaring energy costs as the price cap does not apply to them. Small and medium sized business are the livelihoods of hardworking people and their families. These businesses create jobs, deliver growth, pay taxes, and business rates and provide services to local people. A business is often the product of a lifetimes work. Hospitality is being particularly hit hard from all sides. Customers are tightening their belts, cutting eating out and takeaways, so their sales are already down. Thanks to inflation and now spiralling energy prices, their costs are not just up but completely overwhelming with no end in sight. For some it is already costing more to stay open than to close, for others their business is unviable. Any business that borrows to pay its running costs will also be hit by increased interest costs. Businesses are closing now to cut future losses.
Government must act to protect local business. I am pushing for a rapid and immediate response to this crisis. Whilst there has been support for households, and there is more to come, there has been no help for business. Why save businesses from the pandemic, only to let them go under in the energy crisis, triggering job losses and a full-blown recession. Business needs an equivalent of the pandemic response now: a VAT discount, a business rates holiday, interest free Government backed loans. These businesses are the lifeblood of our community and provide local jobs on which so many depend.
