The leaders of two South West chambers of commerce are urging the government to provide “practical support" to companies amid the energy crisis.
Somerset Chamber of Commerce’s chief executive, Emma Rawlings, said the cost-of-living crisis and “the cost-of-doing business crisis” were “two sides of the same coin”.
“The government is running out of time to offer businesses and households the support they need - firms cannot afford to wait another month without practical support measures being put in place,” she said.
Phil Smith, managing director of Bristol-based chamber Business West, said now was “not the time for complacency” from ministers.
The comments follow an announcement by energy watchdog Ofgem on Friday (August 26) confirming the energy price cap will rise more than 80% in October, from £1,971 to £3,549.
The cap will come into effect for around 24 million households in England, Scotland and Wales on default energy tariffs on October 1, and will remain in place until December 31, when it will be adjusted again.
Ms Rawlings said the impact of the energy crisis on business, along with record-high inflation and rising interest rates, could not be “overstated”.
“We cannot see another month of the same old news, it’s time for action and... it’s time for the government to listen,” she said.
Mr Smith agreed. He said some businesses in the West Country were facing increases in bills of more than 300%, with some questioning the viability of continuing.
“As energy bills rise to unprecedented levels and businesses face uncapped energy tariffs, it is crucial that the government steps in now to support firms at a time when consumers are also cutting back on spending due to inflationary pressures,” he said. “Businesses need strong leadership to help them weather this storm.”
Business West said the government could take “immediate measures” to help firms, including reducing VAT and business rates, and providing grants for businesses to install renewable technology.
The British Chambers of Commerce, of which Somerset Chamber and Business West are a part, have written to prime minister Boris Johnson, chancellor Nadhim Zahawi and both Conservative leadership candidates - Rishi Sunak and Liz Truss - proposing a five-point plan to provide support to UK businesses.
The organisation has called for help, including more power for Ofgem to strengthen regulation of the energy market for businesses, a cut in VAT to 5% to reduce energy costs for businesses and a Covid-style support package of grant funding for SMEs struggling with the cost of energy.
“There should also be a temporary reversal of the National Insurance (NI) increase and an immediate review and reform the Shortage Occupation List (SOL) to help bring down wage pressures and fill staffing vacancies,” added Ms Rawlings.
Mr Zahawi said "help was coming" from the government, with £400 off energy bills for UK households, a second instalment of a £650 payment for vulnerable homes, and £300 for all pensioners.
He said: “While Putin is driving up energy prices in revenge for our support of Ukraine’s brave struggle for freedom, I am working flat-out to develop options for further support. This will mean the incoming prime minister can hit the ground running and deliver support to those who need it most, as soon as possible.”
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