Energy crisis: Act now or many firms won 't survive - Chamber

Many businesses “will simply not survive ” the energy crisis without urgent support from government, business leaders warned today.

The warning was issued by Greater Birmingham Chambers of Commerce following the announcement of an 80 per cent energy price cap increase.

Ofgem announced this morning that the cap will increase to £3,549 for an average household from 1 October.

A further increase is expected in January during the peak of winter.

And while there is no equivalent cap for businesses, the Chamber says they will still suffer from a huge hike in prices.

Raj Kandola (pictured), head of policy at Greater Birmingham Chambers of Commerce , said: “The scale of the crisis facing households and businesses has been laid bare this morning following the record increase in the energy price cap.

“As data from our recent Quarterly Business Report has shown, local businesses have been suffering for months from the huge spike in inflation, with a record number under pressure to raise their prices and many are facing huge overheads which are simply unsustainable in the long term unless action is taken.

“Both of the candidates in the running to become Prime Minister have alluded to the severity of this crisis but neither has set out a comprehensive plan on how they will effectively help not only households but also businesses to get through the next few months.

“The time for political grandstanding is over - businesses need the Government to intervene right now otherwise many will simply not survive this crisis in the long term.

“Introducing an emergency energy grant for businesses, removing VAT from business energy bills, reversing the recent increases to National Insurance and introducing temporary VAT relief measures for hospitality and retail businesses would offer much need respite and give firms the breathing space they need for the coming months. ”

The Chamber is hosting a webinar to help businesses reduce their energy usage and lower their bills, as part of the forthcoming Sustainable Business Series.

Complete the Quarterly Business Report for Q3.

Book on to the Energy Webinar as part of our Sustainable Business Series.