Chancellor Jeremy Hunt
(Picture: PA Wire)London business leaders accused ministers of “neglect” on Wednesday as a survey showed energy bills for firms in the capital have soared by 137 per cent in the past year.
The surge in gas and electricity costs has left many firms on the edge as they face a looming recession and winter strikes.
But the Government announced this week that it was delaying a decision on whether to extend its energy support package for businesses, which runs out at the end of March.
The delay triggered outrage among business groups who warned that ministerial inaction could force companies to slash jobs in the new year.
“How many times can the Government — which once claimed to be pro-business — U-turn on promises and neglect businesses, the drivers of economic growth and shared prosperity?” said Richard Burge, chief executive of the London Chamber of Commerce and Industry (LCCI).
“We know that energy costs are devastating businesses. The Government must outline continued energy support for businesses in the UK — getting out of the cold should not mean going into the red.”
According to the survey by the LCCI:
- 75 per cent of businesses have seen operating costs rise in the past year.
- Energy costs have risen 137 per cent on average.
- One business saw its annual energy costs rise from £43,200 to £134,400, an increase of 300 per cent.
- A central London hotel chain cited a 700 per cent rise in energy costs.
Former PM Liz Truss announced the Energy Bill Relief Scheme (EBRS) in September as global energy prices soared partly because of Russia’s invasion of Ukraine. The scheme, which came into force on October 1, provides a discount on wholesale gas and electricity prices for all non-domestic customers — including all UK businesses, charities and public organisations such as schools and hospitals.
Businesses were hopeful that Chancellor Jeremy Hunt would announce plans for an extension to the EBRS before Christmas.
But Treasury minister John Glen said on Monday that a review on whether to continue the £18 billion scheme in April would not now be complete until the new year.
The Treasury said it needed to ensure “longer-term affordability and value for money for the taxpayer”. It added that the announcement of the review’s outcome would “ensure businesses have sufficient certainty about future support before the current scheme ends in March 2023”.
