Business West is calling for more information on how firms will be supported by the government after the new government’s Energy Price Guarantee was announced last week.
This comes as the rise in Consumer Prices Index inflation by 9.9% in August confirms the sustained pressure businesses and consumers have been facing over the past year.
This is reflected in the squeeze on businesses’ operating costs as Producer Price Inflation figures remain at record highs of 20.5% in the year to August 2022.
Claire Ralph, Policy Manager at Business West, said:
“Business West welcomed the new government’s Energy Price Guarantee for households and the cap also applying to businesses and other non-domestic consumers of energy.
“Five days on we are still waiting to see the detail of how this will function for businesses in our region who are facing unprecedented costs of doing business. Given the guarantee was supposed to be in place for 1st October unless the Government urgently publishes the detail businesses will be unable to plan their operations through the winter months.
“Business West remains concerned that the guarantee for businesses is only in place for 6 month which is far too short a time period unless the energy market returns to normal conditions by the spring. Otherwise, viable businesses will be in serious jeopardy if there is a cliff edge to the support. It remains a very worrying time for firms in the South West.
“We will publish detail to help businesses interpret what the guarantee means for them when we can.”
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