Energy support cuts to 'squeeze businesses even tighter', say Coventry commerce chiefs - The Coventry Observer

Energy support cuts to 'squeeze businesses even tighter', say Coventry commerce chiefs

Coventry Editorial 16th Jan, 2023   0

COVENTRY and Warwickshire businesses will be ‘squeezed even tighter’ by the government’s decision to cut energy support for firms from April, according to the region’s chamber of commerce.

The chamber’s chief executive Corin Crane said discounting wholesale prices when costs are high rather than costs being capped would be a further blow to firms in the region.

Crane said: “We have been calling for the Government to give firms clarity on what support will be available once the current package runs out in March.

“We welcome the announcement and the fact it will last for a year, but the drop-in support means that businesses across our region will be squeezed even tighter.

“Firms are facing challenges left, right and centre and another rise in costs at the start of the next financial year will hit them hard.

“We understand that the Government has to balance public finances but we also need businesses to have confidence they can invest and grow over the short, medium and long term.”

He added a new strategy was needed, including incentives for firms to invest in renewable energy sources, saying it would bring longer-term stability to the energy market and provide an economic boost.

“It’s vitally important businesses are supported in reducing their energy consumption to alleviate some of the rising costs.

“We do welcome the substantially higher level of support which will be provided to businesses in sectors identified as being the most energy and trade-intensive.

“Members of our Manufacturing, Automotive, Construction and Engineering (MACE) group believe the UK Government is taking a huge gamble on energy and gas prices staying low.”

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