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22
Aug 2022
MPs warned energy bills are pushing Harrogate district businesses to ‘tipping point’
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:
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.
Read more:
- £70,000 energy bill increase forces Harrogate district farm shop to close
- Harrogate council could dip into reserves to cover soaring energy costs
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:
The three MPs have been contacted for comment.
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