Harrogate council approves recruitment plan to help under pressure taxation staff

Harrogate Borough Council has approved £42,000 worth of funding in an effort to tackle a work backlog in its revenue department.

The council has faced an increase in workload and staffing shortages during covid and the energy crisis.

In a report to Cllr Graham Swift, cabinet member for economic development and resources, the authority said the response to the pandemic and the £150 energy rebate had increased pressure on “an already busy team”.

The authority now plans to appoint 2.5 full time equivalent staff until March 2023 to help tackle the backlog.

It comes as the government awarded the borough council funding to help cover costs associated with covid and the energy rebate.

A report presented to Cllr Swift by officers said:

“Revenues section has currently been using temporary staffing resources to provide experienced revenues staff with quality assurance checking for both council tax and business rates.

“The ability to extend this provision through to March 31, 2023 will provide resilience and continuation of consistent knowledge within the team to be able to effectively prioritise on clearing the backlog.”

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Uncertain future for Harrogate Tea Rooms due to ‘nightmare’ energy bills

The owner of The Harrogate Tea Rooms has said energy bills that have risen “five-fold” are having a major impact on his business.

Tony and Carrie Wilkinson have owned the tea rooms in Westminster Arcade for 10 years.

Mr Wilkinson described the price hike as a “nightmare” and said a cloud of uncertainty was hanging over the cafe’s future as a result.

He said his business was currently running at a loss and he couldn’t rule out closure if more government support was not provided. He added:

“Even with the government incentive, our energy bills have gone up five-fold.

“Last month my wife was trying to energy save and she managed to reduce the bills by 22 per cent just by not having the lights on as much and doing baking in the morning. But the bills are still five times higher than they were.

“We are having to change the menu so we are not offering things that take a long time to cook. It’s a real problem.”

It comes after a turbulent period for the hospitality industry, which is still recovering in the wake of the pandemic.

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Last month Ainsty Farm Shop closed due to soaring energy bills and many other businesses are struggling to cope.

Mr Wilkinson said:

“It’s a nightmare really.

“At least with covid we knew where we were and what we were doing. With this, we don’t know what’s coming tomorrow.

“We can’t pass on the costs to the customer. We are effectively running at a loss and for how long I don’t know. It has made a massive difference to us.”

‘Closure is a possibility’

Mr Wilkinson said footfall had also taken a hit due to people cutting down on spending amid the cost of living crisis.

He said:

“Visitor numbers are down. We are just going to have to see what happens and hopefully the shows at the Harrogate Convention Centre and the Royal Hall will help things to pick up.

“It’s a difficult time for anyone in the industry.

“Closure is a possibility if we don’t get more help and support.

“But we battle on. We offer a good service and home-cooked food. We get support from our regular customers. We just need more visitors. We hope things are going to pick up.”

Harrogate district businesses urge new PM to offer urgent support

Businesses across the Harrogate district have called for urgent action to support them in the face of growing pressures.

As new Prime Minister Liz Truss takes up her post, business organisations have told the Stray Ferret she must move swiftly as the cost of living and energy price crises begin to bite.

Peter Lacey, of Knaresborough Chamber of Trade‘s executive, said:

“We’re waiting for the new government to be announced later this week, but needless to say the chamber of trade are extremely concerned about the lack of any ceiling on business costs for energy, on top of previously identified cost pressures from the general rise in inflation.

“There is the real risk that without significant intervention businesses will find it impossible to afford the cost of energy and will be forced to close.

“Following so close on the heels of covid, many businesses have not had the chance to build up their reserves and are therefore particularly vulnerable.”

Mr Lacey said the rising fuel prices and the wider cost of living crisis would form part of discussions at this week’s chamber of trade meeting in Knaresborough.

His views were echoed by Lilla Bathurst of Ripon BID, who said:

“Ripon is a city of great, independent businesses who have survived the last few years of covid-induced pressure and uncertainty.

“We urge the new Prime Minister and her government to offer immediate support for businesses as they face both an energy and cost of living criss.

“We would recommend that this help package is delivered swiftly and is both realistic and fair in that it has a real impact in helping businesses of all sizes as we continue to navigate through these uncertain times.”

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Sue Kramer, president of Harrogate District Chamber of Commerce, added:

“Ms Truss must address the enormous challenges businesses are facing to survive from the energy crisis, staffing issues and rising costs due to inflation.

“Businesses are in an incredibly precarious position, with many on the brink. We need her to introduce an emergency package of measures that will save businesses from closure.”

Tim Ledbetter, chairman of Nidderdale Chamber of Trade, said he hoped Ms Truss’s upbringing in Leeds would deliver some “good old Yorkshire common sense”.

He said local businesses wanted to see policies which delivered cuts to fuel bills and energy costs, as well as a commitment that cash would not be slowly removed from circulation.

Above all, he said she should show “strong, effective, honourable leadership, delivering change swiftly”, adding:

“I hope Liz Truss turns out to be the Prime Minister who is remembered as the leader who put a stop to the worry and suffering that so many in small and medium sized businesses are going through at the moment.

“In Truss we have no option but to place our trust.”

Andrew Jones MP defends government response to energy crisis

Harrogate and Knaresborough MP Andrew Jones has defended the government’s response to the energy crisis, saying there are “no easy short-term fixes” to reduce the nation’s dependency on gas and oil.

Business leaders wrote to Mr Jones this week with warnings that many firms face closure due to soaring energy prices.

In response, Mr Jones said long-term progress had been made in the move away from fossil fuels and that the government was providing support for businesses and households during the current crisis.

He said in a letter: 

“Renewable capacity in the electricity market has increased from 2.3% in 1996 to 49.7% today, according to the UK Energy Brief 2022.

“Even though renewable energy is supplying more of the market, its cost is linked to wholesale gas prices.

“What the above shows is that there are no easy short-term fixes to reduce our dependency on gas and oil. But the long-term decisions that have been taken are beginning to bear fruit.”

Mr Jones was writing in a letter to the Harrogate District Chamber of Commerce, which also contacted Skipton and Ripon MP Julian Smith and Selby and Ainsty MP Nigel Adams about its “grave concerns”.

Chamber chief executive David Simister urged the Conservative MPs to put pressure on the government to “act now” and help businesses before they reach “tipping point”.

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In response, Mr Smith said in a statement he was “extremely concerned” about energy costs and that he would “put pressure on ministers to do more”.

Meanwhile, Mr Jones also highlighted the support already being provided to businesses and families, including a £400 grant for all UK households from October.

Homes in council tax bands A to D should have also received £150, while eight million low income households will get £650 on top of this. There are also £300 payments promised for eight million pensioners.

For businesses, Mr Jones said a new rates relief will support investment in property upgrades from 2023 when a separate small profits rate will also mean around 1.4 million businesses continue to pay corporation tax at 19% or none at all.

Mr Jones added: 

“Business owners, those who work for them and their customers are also domestic gas and electricity users and you will know that a lot has been done in respect of shielding everybody from rising prices.

“I wanted to highlight that support for businesses and employees is already of scale.”

His comments come as the government has previously said there would be no new policies before a new Prime Minister is in place. 

The new Conservative Party leader – and Prime Minister – is set to be announced on September 5.

Liz Truss is the current favourite to replace Boris Johnson. She has promised tax cuts and recently hinted at direct financial help for hard-hit households.

Her rival, Rishi Sunak, has vowed to introduce more targeted support for households, including a reduction in VAT on domestic energy bills from 5% to zero.

Fears in Scotton that gigantic solar farm will spoil picturesque village

Residents in Scotton are mobilising against plans to build a solar farm the size of 150 football pitches that they believe will spoil their picturesque village.

UK energy firm Gridserve is behind a proposal to build the solar farm on fields belonging to Lawrence Moor Farm.

Thousands of solar panels would generate up to 49.9 megawatts of green energy that could power up to 14,000 homes.

The village on the outskirts of Knaresborough has a population of around 600 people.

Scotton resident Richard Tallis, who has lived in the village for 12 years, has distributed leaflets to villagers and said 165 people have responded to say they are opposed to the plans.

Two public footpaths would be surrounded by solar panels if they were passed.

Mr Tallis said:

“We’re not against solar farms, just put them in the right places.

“Agricultural land should be used for agricultural purposes.

“There’s a strength of opinion around the village opposing it.”

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The main site where Gridserve wants to put the solar panels is bound by the narrow country roads Low Moor Lane and High Moor Lane. It is also opposite the village primary school.

Mr Tallis said he fears the roads are ill-equipped to cope with eight months of construction traffic whilst the site is built.

He said he is not a “NIMBY” but feels that solar farms should be built on the edge of motorways and away from residential areas.

“I accept there will always be people that criticise us for opposing it.

“But there are other sites that are more suitable, not on the edge of a picturesque green village.”

Net-zero

This morning the UK government published its flagship energy strategy. It wants the country to produce most of the energy it uses through renewables.

It says the UK will increase current solar capacity by five times before 2035.

A spokesperson for Gridserve said:

“Matters of proximity, visual impact and access throughout the construction and operation of the Scotton solar farm will be integral parts of the forthcoming planning and design process.

“We hope we are able to proceed with the next design phases in an open, collaborative approach that involves members of the local community and other statutory and non-statutory stakeholders”

CNG employees in ‘horrible situation’ regarding redundancy payouts

Employees of the collapsed Harrogate energy firm CNG have described the uncertainty over redundancy pay as a “horrible situation” with Christmas just around the corner.

About 100 staff and chief executive Paul Stanley discussed the insolvency programme at an online meeting yesterday

Two different CNG employees, who asked to remain anonymous, told the Stray Ferret that staff had hoped to receive clarification about redundancy pay but were left disappointed.

They said staff had previously been told they would be paid redundancy by the company but that this was withdrawn. They were then told it would be paid by the government, but at yesterday’s meeting, they were not given answers on when this will be and how much they will receive.

One employee said:

“This is a huge kick in the teeth for those who have stayed loyal to CNG for many years”.

Another employee described the atmosphere of the meeting as “cold”. They added:

“We were plainly made to feel like a nuisance”.

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CNG ceased trading two weeks ago due to spiralling wholesale gas prices but administrators are yet to be appointed.

According to CNG’s annual accounts from October 2020, the company had, at the time, £36.7m in cash reserves.

Questions were put to Mr Stanley at yesterday’s meeting about what had happened to this money. One employee said Mr Stanley “swiftly avoided the question”.

The Stray Ferret approached CNG for a response but we did not receive one at the time of publication.

Harrogate firm CNG to stop supplying energy companies

Harrogate-based energy supplier CNG Group is to stop supplying gas to energy companies, amid spiraling gas prices that have caused several companies to close.

CNG, which is based on Victoria Avenue, was set up 27 years ago and is one of Harrogate’s major employers with around 180 staff.

It supplies about 15 to 20 retail energy companies through its wholesale business arm. It also has about 50,000 business customers.

However, an email from chief executive Paul Stanley to customers, seen by the Stray Ferret, said the current energy crisis had caused “significant financial damage to CNG” and it was exiting the wholesale market.

The email urged customers to find alternative suppliers.

It said:

“The past few weeks in the energy market have been unprecedented. Market volatility has caused many suppliers to exit the market in a short space of time, causing a significant amount of financial damage to CNG.

“We expect more suppliers to fail in the coming weeks, further compounding the issue. We have been exploring options to sustain CNG’s shipping services, but it is with regret that I have to inform you that we do not have any further option but to exit CNG’s wholesale business.

“This means CNG will no longer be able to provide gas shipping services. We advise you to seek alternative shipping arrangements through other known gas shippers in the market.”

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Mr Stanley hailed the company’s return to profit in the latest annual report, published in June. This was in part due to improvements in its now stricken wholesale division.

But since June, the energy crisis has deepened and the future of the company appears uncertain.

Sources told Sky News that CNG was preparing its wholesale business for insolvency. Sky News also reported yesterday that the company has a Friday deadline for bidders for its small and medium-sized enterprises arm, which directly supplies more than 40,000 SMEs.

CNG was formerly the main sponsor of Harrogate Town’s stadium on Wetherby Road, which was called the CNG Stadium.

The Stray Ferret has asked CNG for a statement and if it expects to make any job losses but we had not received a response by the time of publication.