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Sept 2022

Last Updated: 21/09/2022

Business

Harrogate businesses breathe 'sigh of relief' after energy bill cut

by Calvin Robinson

| 21 Sept, 2022

Harrogate District Chamber of Commerce describes today's cap on energy bills for businesses as 'extremely welcome'.

Businesses in the Harrogate district will breathe “a temporary sigh of relief” after the government announced a cap on energy bills, a local business group has said.

David Simister, chief executive of Harrogate District Chamber of Commerce, said the intervention by ministers to tackle the sky high cost of gas and electricity was welcome.

The scheme will see the government fix wholesale gas and electricity prices for businesses for six months from October 1.

It means bills are expected to be cut for firms by half their predicted level this winter.

Mr Simister said he hoped the move would prevent businesses from closing down.

He said:

"Today's announcement by the government is extremely welcome, and there will be many businesses breathing a temporary sigh of relief.

“Over the last few weeks we have seen businesses pull the shutters down because of rising energy costs, and I hope today's intervention will prevent many more from doing likewise.

“At the end of the week, the Chancellor will be unveiling a mini budget which I am hopeful will further take into account the needs of businesses.

“However, one thing we do have to bear in mind is that this money is being borrowed and therefore will have to be paid back at a later date.”

Rising energy bills has already forced some businesses in the district to close.

They included Ainsty Farm Shop, which closed last weekend after its owners were told their annual energy bill was set to jump from £20,000 to £90,000 a year.

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Meanwhile, ministers announced that the cut in energy bills would also apply to hospitals, charities and schools.

A spokesperson for Harrogate and District NHS Foundation Trust said:

“As with every other area of society, hospitals are not immune to rising energy costs, and as part of our annual budget planning we do our utmost to take into consideration any potential rises.

“Additional support provided by government during the current energy crisis will help alleviate some pressures that we face so that we can continue to provide the best possible health care for our community.

“We cannot simply rely on cost capping energy bills and our trust is committed to reducing costs, becoming more energy efficient and lessening our environmental impact by becoming a greener, more environmentally friendly organisation.

“A number of major projects have been undertaken as part of our £14 million Salix investment. This work includes insulating our roofing and replacing glazing across the Harrogate District Hospital site to help reduce our energy consumption."

Kwasi Kwarteng, Chancellor of the Exchequer, said:

“We have stepped in to stop businesses collapsing, protect jobs, and limit inflation.

“And with our plans to boost home-grown energy supply, we will bring security to the sector, growth to the economy and secure a better deal for consumers.”

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Harrogate businesses breathe 'sigh of relief' after energy bill cut

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