Harrogate and Knaresborough Liberal Democrats have called for the government to cancel plans for a hike in the average household energy bill from April.
The call comes as the energy price cap is set to reduce from £4,279 to £3,280, but bills are still expected to rise by £500 to an average of £3,000 a year.
The government’s own energy price guarantee is expected to be less generous and a £400 winter discount is set to end.
Local Lib Dems have called on ministers to step in and offer a new support package for businesses, leisure centres, schools and hospitals across Harrogate and Knaresborough.
Tom Gordon, the Liberal Democrat prospective parliamentary candidate for Harrogate and Knaresborough, said:
“The Conservatives’ plan to hike energy bills in April will come as a hammer blow to families in Harrogate and Knaresborough already struggling with soaring mortgages and rents, shopping bills and tax rises.
“With no plan to deal with this cost of living crisis for people or businesses, this chaotic, out-of-touch Government is instead making it much worse because they just don’t get it.
“People need real support and that’s what the Liberal Democrats are calling for. Sadly, to add insult to injury Rishi Sunak is happy for energy bosses to rake in millions of pounds in bonanza bonuses, while families struggle to put food on the table or heat their homes.”
The Lib Dems claim its plans would mean that in Harrogate and Knaresborough the average household would be £522.94 better off and would be funded by raising the rate of the windfall tax on the profits of oil and gas firms from 35% to 40%.
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Chancellor Jeremy Hunt told the BBC this month that he believed the government did not have the “headroom to make a major new initiative to help people”.
Speaking after the latest setting of the energy price cap, Jonathan Brearley, chief executive of Ofgem, said:
“Although wholesale prices have fallen, the price cap has not yet fallen below the planned level of the energy price guarantee.
“This means, that on current policy, bills will rise again in April. I know that, for many households this news will be deeply concerning.”
The Stray Ferret approached Conservative MP for Harrogate and Knaresborough, Andrew Jones, for comment.
Harrogate council faces £1.2m overspend on energy billsHarrogate Borough Council has estimated its energy bills are set to cost £1.2 million above budget by the end of the financial year.
In a quarter three financial report due before councillors next week, Gillian Morland, service finance manager, said the authority has an estimated overall overspend of £1.4 million.
The overspend is largely due to soaring utility costs and a higher than expected staff pay award. It budgeted for a 2.5% pay increase but the actual increase was 6.7%.
In her quarter two update in October, Ms Morland forecast the council faced a “sizeable overspend” by the end of the financial year.
She told councillors:
“As things stand we are looking at a sizeable overspend this year.
“We are hoping overspend will come down but we do have sufficient funds to cover it.”
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But the economic situation remains difficult, mainly due to rising energy bills.
In quarter three, an overspend of £170,000 is predicted in housing and property, an increase of £121,000 from quarter two. The report explains:
“There is now a forecast overspend on homelessness of £112,000. This is primarily down to an overspend on B&B accommodation.
“There is a forecast £51,000 overspend on street lighting primarily due to energy costs and street nameplates.”
Parks and environmental services is forecasting an overspend of £739,000, largely due to temporary staff costs.
Harrogate Convention Centre is forecasting a net overspend of £264,000 — the reasons are exempt from the public and media.
But a £166,000 underspend is expected in legal and governance and underspends are also forecast in ICT and organisational development and Improvement.
Support from government
The report comes after senior county councillors warned that soaring energy costs meant local authorities needed support from government.
Cllr Simon Myers, executive councillor for growth, culture, leisure, sport and housing at North Yorkshire County Council, told a meeting in September:
Top local football clubs ponder earlier kick-offs to save floodlight costs“You can imagine that the extra costs in heating schools, leisure facilities and other council buildings are going to be enormous.
“And it is unlikely that there will be any ability to recoup that cost from residents. Indeed, it would be wrong to, given the economic circumstances that our residents are facing.
“We are going to need help from central government if we are not going to cut back on essential services.”
Leading football clubs in Harrogate and Knaresborough are considering whether to kick-off earlier on Saturday afternoons over winter to save money on floodlights.
Rising energy bills mean the cost of lighting up matches is expected to soar this season, especially after the clocks go back on October 30.
Bringing forward the traditional 3pm Saturday afternoon kick-off could save those clubs in the district with floodlights — Harrogate Town, Harrogate Railway Athletic and Knaresborough Town — thousands of pounds over the season.
For the district’s only professional club, Harrogate Town, any change seems unlikely. A club spokesman said:
“We have no plans to move our kick-offs at this stage.
“It was discussed at an English Football League meeting with all clubs last week and the overriding feeling was that it would be detrimental to attendances.”
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But the issue is less clearcut for semi-professional teams, which attract smaller attendances.
Michael Edwards, chairman of Harrogate Railway, who play in the Northern Counties East League Division One, said it was one of many teams in the league pursuing the idea. He said:
“It could save hundreds if not thousands of pounds over a season and every little bit counts.”
He said Harrogate Railway were looking to start some matches at 1.30pm or 2pm from November onwards — but any change has to be agreed by both teams three weeks in advance.
Clare Rudzinski, secretary of Knaresborough Town, who play in the Northern Counties East League Premier Division, one tier above Harrogate Railway, said the issue would be raised at a committee meeting next week.
Floodlights will continue to be used at midweek matches, when the evening kickoff times make floodlights essential.
Business Breakfast: Marketing agency appointed to support Knaresborough energy firm
Business Breakfast is sponsored by Harrogate law firm Truth Legal.
A Harrogate marketing agency has been appointed to support a Knaresborough-based international energy company with its plans for growth.
The Big Bamboo Agency will deliver strategic marketing, PR, social media management and community engagement activities for Harmony Energy.
The firm, which develops utility-scale battery energy storage along with wind and solar projects, has worked across the UK as well as developing its work in France and New Zealand.
It has a long-standing relationship with Tesla, which has provided battery systems for its UK sites.
Pete Kavanagh, chief executive of Harmony, said:
“We were looking for an agency that would become an outsourced marketing and communications team, as an extension of the wider team we already have in place. We wanted to find a partner that we could build a long-term trusted relationship with.
“Having met Nicola and other members of the team, we knew we had found what we were looking for. Their experience and capabilities fit nicely with ours and we know they will understand our industry, due to their extensive credentials.”
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Money-saving energy advice for Harrogate BID businesses
Businesses will have the opportunity to learn more about saving money on energy bills at a series of events today.
Harrogate BID is inviting its members to join one of three sessions in person or online to hear from energy consultant Ryan Edwards.
He will give businesses a clearer picture about the current energy market, as well as giving advice on securing energy contracts.
The first event is at Jespers Bar and Kitchen on Station Parade at 9.30am, with another at Starling Cafe on Oxford Street at 5.30pm. A session will also be held on Zoom at 11am.
Businesses interested in taking part can email Harrogate BID for more details.
Harrogate businesses breathe ‘sigh of relief’ after energy bill cutBusinesses 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:
Harrogate businesses ‘still unable to pay energy bills’ despite PM’s pledge“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.”
Harrogate business leaders have warned that Liz Truss’s energy plan is “too little too late” to save struggling firms from closure.
The new prime minister today announced that annual energy bills for households will be frozen at £2,500 until 2024 as part of a huge support package which could cost up to £150 billion.
However, the scheme is less generous for businesses than had been expected as their bills will be capped for six months – a shorter period than many had hoped for.
Sara Ferguson, chair of Harrogate BID, said:
“As the owner of a town centre restaurant, one that uses a lot of gas and electricity, I don’t think the support being offered goes far enough, or long enough.
“It pains me to say this, but even with the energy price cap some business will simply not be able to pay higher bills.
“It is going to be another tough time for the high street.”
Energy prices have soared this year, largely due to the conflict in Ukraine which has reduced supplies of gas.
This has driven up the UK energy price cap which sets the highest amount suppliers are allowed to charge households and had been due to rise from £1,971 to £3,549 in October.
Unlike households, small businesses are not covered by the cap and Harrogate district MPs were last month warned that many firms would soon reach a “tipping point”.
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Speaking in the commons today, Ms Truss said she was “acting immediately” in her premiership and that the support for businesses may be extended for vulnerable sectors after the six-month period.
“Extraordinary challenges call for extraordinary measures, ensuring that the United Kingdom is never in this situation again.”
Reacting to her announcement, David Simister, chief executive of Harrogate District Chamber of Commerce, said it would be “too little, too late” for some businesses.
Harrogate district business groups call for more support after new PM’s energy announcement“Businesses have had it incredibly tough for more than two years, and it isn’t going to get any easier. Surging energy costs are just one of the pressures facing businesses.
“When Ms Truss recently came to Harrogate, members of Independent Harrogate challenged her about business rates.
“Her response was that she would review them. This she needs to do urgently, along with looking at VAT, fuel duty, National Insurance and corporation tax.”
A business organisation in Harrogate has called for more certainty after the new Prime Minister announced support for them in the face of rising energy bills.
While a clear package has been put in place for households, limiting typical household bills to £2,500 per year for two years, Liz Truss has said “equivalent support” for business will last for six months.
But local businesses have called for further measures and more long-term reassurance that they will be protected from future energy price hikes.
David Simister, chief executive of Harrogate District Chamber of Commerce, said:
“I welcome the fact the Prime Minister has included businesses in her support package, but for some it will be too little too late, and unlike households it’s just for six months. She could also have reduced VAT on energy bills, but didn’t.
“Businesses have had it incredibly tough for more than two years, and it isn’t going to get any easier. Surging energy costs are just one of the pressures facing businesses.
“When Ms Truss recently came to Harrogate, members of Independent Harrogate challenged her about business rates. Her response was that she would review them. This she needs to do urgently, along with looking at VAT, fuel duty, National Insurance and Corporation Tax.”
Mr Simister’s views were echoed by Ripon BID, whose manager Lilla Bathurst said:
“Whilst any support for businesses is welcomed, we feel that a six month energy price cap does not go nearly far enough to support businesses that have weathered the last very difficult two years.
“The majority of businesses in the BID area simply do not have the reserves to ride out any further cost pressures. We very much urge the government to announce further meaningful and targeted business support in the next few days.”
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- Harrogate district businesses urge new PM to offer urgent support
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Harrogate Neighbours warns of care home closures
The chief executive of a Harrogate care charity has warned the energy crisis could force some care homes to close without urgent government action.
Sue Cawthray, chief executive of Harrogate Neighbours, said spiralling bills were already being felt by care providers, with the charity’s own gas costs more than doubling over the last 12 months to over £90,000.
She added the looming winter and further price rises was a “huge concern” for the care sector, which looks after the most vulnerable in society. Ms Cawthray said:
“Those working in social care are responsible for people’s lives and we have got to make sure that not only are our residents warm, but also that food costs are addressed.
“I have a colleague who is a small care provider and very concerned about how he is actually going to pay the wages, nevermind keep people warm.”
New prime minister Liz Truss has pledged to “act immediately” on the energy crisis – with a price freeze funded by government-backed loans to energy companies widely expected.
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But with the full details of the plans yet to be announced, Ms Cawthray said the charity was already looking at different ways to reduce its energy costs, including the use of heating monitors in residential rooms and solar panels.
She added that any government plans must include care homes and charities like Harrogate Neighbours, which provides residential care and a hot meal delivery service. She said:
Dacre Banks pub gives warning as it faces £65,000 energy bill“The government needs to be helping out everybody – it worries me just how people are going to cope.
“We use a huge amount of energy, not just in our residential areas but also in our kitchens and for our meals on wheels service so we have really got to think about our costs.
“This is a huge concern for us as we are a not-for-profit organisation
“At The Cuttings, our residents are responsible for their own bills so we have got to ensure they are not going to be turning down their heating to save money.
“We are going to have to be creative and innovative, as we always are.”
The owner of the Royal Oak pub in Dacre Banks has warned that there will be a “massive” knock-on effect if local pubs close this winter after he revealed that the pub now faced an energy bill of £65,000 a year.
Speaking to The Stray Ferret, Steve Cock said he was “absolutely distraught” when he realised what the cost would be.
The pub will now have to increase its prices to try and meet the rising costs.
On Tuesday, industry group the British Beer and Pub Association (BBPA) asked for government intervention to help small businesses in the face of “out of control” bills.
It warned that there could be “real and serious irreversible” damage if nothing was done.
Until this year, the Dacre Banks pub paid between £13,000 and £15,000 for energy.
It will start paying its £65,000 bill next month after entering a three-year deal to reduce the cost down from the initially proposed £100,000 a year.
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Steve and Anna Cock have run the Royal Oak pub in Dacre Banks for 24 years (photo: Royal Oak)
“We love the village; we love the people.”
The pub has also been hit by suppliers asking for higher prices for products including oil, meat and vegetables.
Mr Cock hopes that the Dacre Banks community will come together to support it through the winter. He said:
“We’ve been here at the pub for 24 years… We love the village; we love the people – lots of nice people come in here.”
However, the Royal Oak’s owner warned that it was not the only small business facing hardship:
“If businesses don’t get help, it’s not just us: it’s restaurants, it’s fish and chip shops, it’s little village shops. The high street will see shops closing one by one.”
The number of pubs in towns and villages has already reduced in recent years. According to real estate consultancy Artus Group, more than 7,000 have closed across the UK since 2012, bringing the total remaining open to just under 40,000 earlier this year.
The BBPA’s chief executive, Emma McClarkin, said:
Business Breakfast: Harrogate BID to host energy saving workshops for businesses“If we lose [local pubs], we not only lose businesses and the jobs that go with them, but also the beating heart of communities across the country where people gather in times of need. We need an energy cap for businesses before it’s too late.”
Business Breakfast is sponsored by Harrogate law firm Truth Legal.
Harrogate Business Improvement District (BID) is to hold three workshops around saving energy.
The organisation is partnering with energy consultant Ryan Edwards to look at ways of dealing with rising electricity and gas prices.
There will be three events during the day on Monday, September 19.
The first is being held at Hustle & Co on Prince Albert Terrace at 9.30am, the second on Zoom at 11am and the third at 5.30pm at Starling Café on Oxford Street.
The sessions will last between 30 and 45 minutes.
Business who want to attend the Zoom meeting have been asked to email the BID for the link.
Matthew Chapman, Manager of Harrogate BID, said:
“We are acutely aware of the struggles our members are continually having when it comes to understanding, managing and securing new energy contracts for their businesses.”
He said Mr Edwards has expertise that will be helpful:
“He will be able to help us have a better understanding of what is happening within the energy market, and offer practical advice on securing energy contracts.
“Ryan works with more than 26 UK Suppliers, so can assure you that he can find the very best contracts on the market at this time.
“He can also bulk buy energy by buying all Members energy, at the same time driving the unit prices down significantly. It goes without saying, the more businesses we can get involved, the cheaper the unit.”
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Richard Levin of Loop Cashmere, Anne Blanden of Finance Yorkshire, Claire Heathcote of Loop Cashmere and Alex McWhirter, chief executive of Finance Yorkshire
Harrogate cashmere company secures Finance Yorkshire investment
Harrogate luxury cashmere brand Loop Cashmere has secured funding from the business loan organisation Finance Yorkshire.
The company makes its products using sustainable yarn from Inner Mongolia.
The £250,000 it has secured has gone towards opening a warehouse in Leeds and appoint a head of marketing.
Claire Heathcote opened the business with Richard Levin two years ago. She said:
“We saw a gap in the market for a sustainable cashmere brand offering contemporary styles made in the softest high-quality cashmere. Sustainability is the heart of brand from the way we source our sustainably accredited yarn, who we select as expert makers to craft our styles, our small production runs and the use of recyclable and compostable packaging.”
Alex McWhirter, chief executive of Finance Yorkshire, said:
“In just two years Loop Cashmere has developed a strong brand with sustainable credentials which will appeal to fashion-conscious customers. We look forward to supporting them in the next chapter of their growth journey.”