Lancashire businesses welcome aid on energy but want to see more detail

National chairman of the Blackpool-headquartered Federation of Small Businesses Martin McTague said: “It’s a huge relief for millions of small businesses to hear confirmation they will be part of the Government’s plans to help on energy. Many have been pushed to the brink by crippling energy bills, and so it is welcome that help is on the way.

“The toxic combination of uncapped energy hikes, high taxes, inflation and negative growth have become an existential threat for many.

“The FSB is proud to have played our part in championing small businesses’ plight and pitching in ideas to the new team in power, and so we have contributed to today’s intervention.

“Constricting the scale of energy bills for small businesses is unprecedented; we now have a high-level commitment in principle to help businesses get through the winter intact.

"Done right, this will be a lifeline – protecting jobs, communities and future economic recovery.

“However, the announcement is very high-level and sparse on detail.

"Small businesses’ instant reaction is that this is not enough information, yet, for them to plan.”

Ben Harrison, director of the Work Foundation at Lancaster University, a think tank for improving working lives, said the Prime Minister’s energy announcement needed to be just the start.

He said: "The £2,500 energy cap will give many working families stability for the next two years so that they can keep the heating on.

"But there are still big questions about whether this will be paid for by the taxes of working people.

“These measures alone won’t end the cost of living crisis. It is still going to be a very challenging winter for those in low paid, insecure jobs whose wages are not keeping up with rising prices.

"In the longer-term, it is important that the new Government ensures that social security is more responsive to the true cost of living as prices rise.”

Adam Parton, partner at Lancashire accountancy and advisory firm MHA Moore and Smalley said there might still need to be an emergency budget, possibly around September 21,

He said: "Businesses would also welcome a freeze or overhaul of business rates to help them better manage their medium-term costs and gain access to crucial government-backed credit, particularly as interest rates for mainstream capital remain at high levels and many businesses in the hospitality sector are sorely underfunded.

"While the planned reversal of this year’s 1.25 per cent rise in National Insurance is welcome, the government should go further and consider increasing personal allowances to help people retain more of their income. This will create more disposable income and possibly mitigate wage inflation which will in turn impact positively on businesses.”

Ian White from hoteliers association Stay Blackpool said: “The cost of living crisis has not only impacted on the holiday sector businesses, but also those that come to stay in traditional holiday accommodation.

“A couple of members I spoke to this morning state that guests are staying for shorter periods and fewer times a year. Something that only compounds their issues of rising utility bills.”