Thousands of businesses at risk of closure due to spiralling energy costs will have to wait until the new year to discover if they will get further government help.
The Treasury has admitted details of which businesses will receive support after its Energy Bill Relief Scheme expires in April have been postponed until the new year.
It follows repeated promises from the government that businesses would find out by the end of December if they would be entitled to more money.
Under the scheme, businesses which renewed their energy contracts at any point after 1 December 2021 have been eligible for support in the form of a wholesale price set at 21.1p per kWh for electricity, and 7.5p per kWh for gas.
A Treasury spokesman said a final decision would now not be announced until the start of 2023.
“We are protecting businesses from high energy costs this winter, caused by Putin’s invasion of Ukraine, through the six-month £18bn Energy Bill Relief Scheme,” he said.
“However, this is very expensive, and we need to ensure longer-term affordability and value for money for the taxpayer.
“That is why we are currently carrying out a review with the aim of reducing the public finances’ exposure to volatile international energy prices from April 2023.
“We will announce the outcome of this review in the new year to ensure businesses have sufficient certainty about future support before the current scheme ends in March 2023.”
Reacting to the news, ACS CEO James Lowman said: “Rising energy costs are the single biggest concern for convenience retailers now, and without additional support on energy from next April, thousands of stores will be forced to make difficult decisions and many of these businesses will be at risk of closure.
“We’re calling on retailers to write to their MP to outline their concerns and highlight the detrimental impact that rising energy costs will have on their businesses. We need the government to take decisive action and provide urgent clarity on the support businesses will receive beyond March 2023.”
Tom Ironside, director of business and regulation at the BRC, added: ”Without continued support from April 2023, estimates show that retailers could see their energy costs rise by £7.5 billion, putting further pressure on retailer costs and consumer prices. As a result, urgent clarity is needed on what comes next and the support that will be available.”
David Thomson, FDF Director of strategy and devolved nations said business urgently needed certainty: “Soaring energy costs puts food and drink manufacturers under extreme pressure, and are pushing up prices for consumers. It is essential that food and drink businesses get a clear signal as soon as possible of continued support for their energy costs to help curb inflation.”
Federation of Wholesale Distributors CEO James Bielby said: ”FWD has been making the case for support on energy bills for food and drink wholesalers supplying into public sector as well as vulnerable and rural communities.
”With the cost of doing business continuing to soar, ongoing help with energy bills would provide vital support for wholesalers who face a difficult start to 2023.
”The government has consistently said the bar for support is set very high but it is positive that they are taking the time to examine the evidence in detail before making an announcement, although continued uncertainty is unhelpful for businesses whose costs continue to rise.”
Emma McClarkin, CEO of the BBPA, added: “Publicans up and down the country want to stay open, provide a warm and welcoming space and serve their communities this winter, but they urgently need clarity on whether energy support will be extended beyond 31 March and assurance that suppliers will be held accountable on hidden costs. Otherwise, many more will be forced to close not just temporarily but for good, and we’ll lose them from the heart of villages, towns and cities across the UK.
“These are extremely difficult times for our pubs and brewers, and they are doing whatever they can to make ends meet as costs on everything continue to rise. Extending the freeze on beer duty will inject a much-needed flurry of festive cheer for our brewers and pubs, but times are still incredibly toug
No comments yet