Energy support package will help firms plan ahead - Chamber

Business leaders have welcomed a major energy support package from government designed to help firms through the winter months.

The government announced that wholesale energy costs for businesses will be slashed by up to less than half their expected price during winter.

There will also be government-funded cuts to business ' energy bills in line with the reductions that have already been announced for homes.

Like the energy price guarantee for households, the move effectively puts a maximum price on the unit price cost of electricity and gas charged to businesses.

The support package also applies to public entities such as schools, hospitals and charities.

Greater Birmingham Chambers of Commerce said the announcement will allow businesses to plan ahead with greater confidence.

Raj Kandola (pictured), head of policy at the GBCC, said: “Businesses will breathe a sigh of relief following this morning 's formal announcement - it 's a significant intervention from Government to minimise the impact of soaring energy prices.

“Detail around the scheme, particularly in relation to the defined unit price for gas and electricity are also welcome - now businesses can plan ahead in the run up to Christmas with a degree of confidence.

“In the coming days, we hope the Government will provide further information on the definition of a vulnerable business and outline a scheme of support for those businesses that will unfortunately fall outside the parameters of the scheme but will still need help in the months ahead.

“However, we can 't view energy prices in isolation. Right now firms are facing a perfect storm of recruitment challenges, rising material costs and supply chain bottlenecks.

“It 's imperative the Chancellor uses Friday 's fiscal event to extend VAT relief for hospitality and non-essential retailers, pass meaningful reform of the business rates system, and review and reform the Shortage Occupation List to help free up much needed cash for firms suffering from crippling overheads. ”