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Aug 2022

Last Updated: 22/08/2022

Business

MPs warned energy bills are pushing Harrogate district businesses to ‘tipping point’

by John Plummer

| 22 Aug, 2022

Harrogate District Chamber of Commerce chief executive David Simister urges local MPs to put pressure on the government to support firms 'before it is too late'.

Harrogate District Chamber of Commerce has warned the area’s MPs that many businesses will soon reach a “tipping point” and have to close as soaring energy bills hit the high street.

Chamber chief executive David Simister said in letters to Conservative MPs Andrew Jones, Julian Smith and Nigel Adams that he had “grave” concerns for the outlook of high streets with the worst of the energy crisis yet to come ahead of the looming recession.

Mr Simister urged the MPs to put pressure on the government to “act now” and provide support for firms “before it is too late”.

He said:

“Whilst the focus seems very much to be on the cost of living crisis for homeowners, there is little being said about industry and commerce, and what, if any support, will be given to prevent businesses being forced to shut.

“Very soon, the 12-month, 50% business rates discounts is to end.

“This again is going to heap more financial woes on those who pay this tax to central government.

“Coupled with the rising costs of raw materials, fuel, the living wage, and National Insurance, many businesses will soon reach a tipping point, and unfortunately for some the only option will be to shut.”

Unlike households, small businesses’ bills are not covered by the energy price cap, which is set to go up in October when annual bills will average £3,554.

The Labour Party has proposed freezing the cap at the current level of £1,971 a year for households until April when it is hoped prices may start to ease.

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The party argues this would ease pressure on households and potentially give a boost to businesses as shoppers would have more money to spend.

However, Liz Truss and Rishi Sunak – the two Conservative candidates competing to replace Boris Johnson as Prime Minister – have both rejected the plan.

The massive bill increases are already being felt by Harrogate district businesses and with further rises on the horizon, Mr Simister said many will simply not be able to cope with the double impact of shoppers cutting back spending.

He added these impacts were being felt even harder off the back of the covid pandemic which brought “two years of extreme difficulties for businesses”.

He said in his letter to MPs:

“For some, I fear the looming energy crisis, which is yet to bite, will be one storm too many to weather,”

“I urge you as our constituency MP to put pressure on your government colleagues to act now, not in two or three weeks’ time, to bring certainty, and hopefully some comfort, to business owners, including myself, who are incredibly worried.”

The three MPs have been contacted for comment.

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MPs warned energy bills are pushing Harrogate district businesses to ‘tipping point’

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