Ahead of the new energy price cap announcement by Ofgem today, the Scottish Chambers of Commerce (SCC) has called for urgent actions for the Scottish and UK governments to tackle the cost crisis and support businesses.
It has demanded that a Business Relief Package, at a similar level to that offered during the pandemic, be aligned with support offered to communities and households.
The SCC also stated that the Non-Domestic Rates revaluation, that is due to take place in 2023, goes ahead as planned, without any further delay.
It argued for a moratorium on all policy measures that increase business costs for the remainder of this parliament, alongside a pause on "burdensome regulations" such as changes to the non-domestic rates appeals system and new taxes such as the workplace parking levy and tourism tax.
The SCC Action Plan for the UK Government to support businesses consists of:
- A temporary cut in VAT bills to 5% to reduce spiralling energy costs for businesses and introduction of an SME energy price cap, which has also been backed by Scottish Government.
- Covid-style support by introducing Government Emergency Energy Grant for the businesses most at risk from the cost emergency.
- Temporarily reverse National Insurance Contributions and put money back into the pockets of businesses and workers.
- An immediate review and reform of the Shortage Occupation List to help fill talent shortages.
Dr Liz Cameron CBE, chief executive of SCC, said: “Since the start of 2021, businesses could see this crisis coming and have been consistently telling us that they are facing unsustainable rises in costs - the impact of these challenges on businesses, consumers and our communities must be tackled with immediate action.
“The scale of the crisis has reached a tipping point and with so many on the brink, we simply cannot afford any more inaction.
“From the UK Government, businesses need to receive emergency support for spiralling costs through grant funding, energy price caps and a reduction in VAT on energy bills.
“The Scottish Government must also take action within its powers to alleviate the cost burden on businesses and households, including pausing burdensome regulations and providing direct financial support,” she added.
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