Ministers have warned that high streets could turn into "ghost towns" unless businesses struggling with soaring energy costs are handed a £10bn bailout.
Liberal Democrat leader Sir Ed Davey said that emergency legislation, similar to that of a Covid -style support scheme, should be introduced as soon as MPs return to Westminster on Monday. It would mean shops, pubs, restaurants and small businesses would receive grants of up to £50,000 to help them cope with uncapped rises in bills.
The Lib Dems suggested the measures could be funded through increased taxes on banks. It comes as the cost of living crisis continues to hit both households and businesses up and down the country.
Sir Ed said: "Our treasured high streets risk being turned into ghost towns and small businesses across the country risk being devastated by sky-rocketing energy bills, but Conservative ministers don’t seem to get it or care.
"Local shops, pubs, and restaurants could all close their doors for the last time over the coming months unless the Government steps up urgently. We need an energy bailout now to save the high street, rescue small businesses and keep prices down for families.”
Former energy secretary Sir Ed said: "This could be funded by reversing the Conservatives' tax cuts for the big banks, and focusing on saving our struggling small businesses instead. There is no time to waste. The new Conservative Prime Minister must bring in legislation to protect families and businesses from soaring energy bills as soon as Parliament returns on Monday."
The new Tory leader will be elected on Monday and either Liz Truss or Rishi Sunak is expected to become Prime Minister on Tuesday.
Under the Lib Dem proposals, small and medium-sized businesses would be offered Government grants covering 80% of the increase in their energy bills for one year, up to a maximum of £50,000.
The estimated £10bn cost of the scheme could be met by scrapping the cut to the bank surcharge that is due to take effect in April 2023 and increasing the bank levy to 2015 levels, raising £10.6bn over the next four years.
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