Wishaw businesses insist they will still be feeling the pinch this winter despite government intervention on rising energy costs.
Energy bills for UK businesses will be cut by around half their predicted level this winter under a huge government support package.
The scheme will fix gas and electricity prices for companies for six months from October 1, in a bid to stop firms facing soaring costs from going bust.
Industry groups welcomed the package but warned further support may be needed after the winter.
Vicky Gaughan is one of several stylists at Platinum and Leighanne’s Hair and Beauty Studios in Wishaw Main Street.
She said: “Our last bill for one month of electricity was £695, which is a ridiculous amount of money.
“Knowing what is happening for six months is great but what happens at the end of that?
“Wishaw will be like a ghost town because businesses won’t be able to afford to keep the lights on.
“You can get more clients in a salon like ours but you could save on your overheads by just becoming a mobile hairdresser.”
David Smith, who owns The Waverley bar in Wishaw, said: “I was worried that prices would be going even higher especially with costs going up.
“I was trying not to think about it but it would have been very difficult to pass on the rises to our customers, it would have been counter-productive.
“Prices are already massively inflated so it’s hard to really pleased at this short-term fix when energy bills are at an all-time high and the companies are making huge profits.”
Louise Bradshaw, who runs Faby Lou’s Beauty in Motherwell Business Centre is fearful for many companies due to rising costs.
“We’ve had three years of Covid and now this, enough is enough,” said Louise.
“I’m very aware of putting our prices up because essentially we are a luxury item.
“I know a lot of businesses who have just thought ‘enough is enough’ and closed not because they aren’t busy but because of the bills.”
Meanwhile, Scott Allan who runs Rivals Gym in the town centre with brother Sam, added: “We’re open six days a week so any help at this time would be welcome.”
Matthew Fell, CBI Chief Policy Director, welcomed the intervention from the government but insisted businesses need a long-term solution rather than a short-term fix.
He added: “The package will ease worries about otherwise viable businesses shutting-up shop and smaller companies especially will benefit from the discounted rate.
“Businesses will also want to know more about the exit strategy and what happens when the six-month cap runs out. Working closely with business will be key to successful implementation.
“The long-run solution is to double-down on energy security and to incentivise firms to push ahead with ambitious energy efficiency programmes to lower demand.”
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