Chamber reacts to energy bill cap for businesses

Reacting to the Prime Minister’s announcement on a cap for businesses’ energy bills, Mark Casci, Head of Representation and Policy at West & North Yorkshire Chamber of Commerce said: “We welcome the timely and positive intervention by the Government in introducing a price cap for business energy bills.

“In introducing a six month freeze for all non-domestic energy users businesses, along with charities and the public sector now have financial certainty heading into the winter.

“We further note the three-month review point and recognise that this will give firms time to factor in plans for the remainder of the cap.

“However, given that the freeze is only set to last for six months, and that firms are facing myriad challenges from the labour shortages, supply chain disruption and rising raw material costs, it is our view that business investment in the short term is likely to remain low.

“Businesses such as those in the hospitality sector will need further support in the longer term if they are to remain viable and retain staffing levels.

“More widely, a long-range plan will give companies the confidence they need in order to grow their bottom lines.”

Responding to the plans on future energy provision, Baroness Ruby McGregor-Smith, President of the British Chamber of Commerce, said: “We welcome the commitment from the Government to review the UK’s long term energy strategy. It is vital to give business confidence on the continuity of their power supplies and future price stability.

“We must not abandon our Net Zero targets and action must be taken to support business with the switch to more energy efficient technologies and practices.

“The UK is already a world leader in the development of wind power technology and the shift to a more diverse energy mix involving renewables and nuclear power must remain central to our plans.

“But this will not happen overnight and using the UK’s oil and gas reserves to ensure our energy resilience during the transition is a sensible path to take, provided this does not jeopardise our Net Zero targets.”