York businesses demand more energy support-

The wholesale cost of gas and electricity will be almost halved for companies under a scheme which will run for six months starting in October.

The Government will cap the wholesale price paid by non-domestic customers, which include schools and charities.

Andrew Lowson, executive director of York BID said: “I’m hoping the six month package announced today will give businesses (especially retail, hospitality and leisure) re-assurance that increased energy bills will not spiral out of control. 

“We need to see more detail in the coming days, as there are still some clarifications needed regarding those businesses in contract verses those about to negotiate and how the package protects them all?

Andrew Lowson of York BID (Image: pic supplied)

“The York BID is backing the #BusisinessSOS campaign involving150 other BIDs and UK Hospitality, which is asking for further support on Business Rates relief and reduced VAT. 

“Without government looking more holistically and likely reduced consumer spending this winter, the current package may not be enough to convince some businesses that trading through the winter is profitable.”

Sarah Czarnecki of the Hospitality Association of York agreed more support was needed as the cut in expected bills of half still means businesses paying more than  last year.

“The expected level of bills is phenomenal anyway. We need the government help to go further with VAT and business rates,” Sarah said.

Sarah Czarnecki of HAY (Image: Sarah Czarnecki of HAY)

The director of the Grays Court Hotel says hospitality needs a 5% VAT rate like what it had during the pandemic, as opposed to 20% today.

Looking to Friday’s ‘mini-budget’, she added: “The key to all this is what’s going to happen to individual householders. If they cannot get a massive leg up, they won’t be able to afford to go out.”

Rebecca Hill, chair of the Indie York group of independent businesses, welcomed the cut in expected bills, saying they would help businesses survive the winterr, but standing charges are also an issue.

"We have one premises on an old contract with £0 standing charge, but a newer site with a contract set-up more recently has been quoted over £2.30 per day standing charge (over £800 per year) which does not seem to be covered under any of the reported caps from what I have seen so far.  

"As this daily rate should not be directly related to the wholesale gas prices, this element of our bills still seems to be dictated by the energy companies, so the concern is that these particular charges may continue to rise.  

Rebecca Hill of Indie York (Image: Rebecca Hill of Indie York)

"Whilst the unit cap being very welcome news indeed, the fact is that these energy costs are likely to still be over double what they were in previous years - alongside most other costs still increasing - so here at Indie York our message remains the same as ever, please support your local independents as much as possible, we still need you more than ever!"

York Campaign for Real Ale spokesman Jordan Hennessy said all in CAMRA hope the government realises the importance of pubs and bold action is needed.

A one-size fits all solution is not appropriate and a special package was needed for hospitality, from brewers to pubs and clubs, he said.

Mark Casci, head of representation and policy at West & North Yorkshire Chamber of Commerce, said: “We welcome the long-awaited news that the Government is going to provide support to businesses facing existential pressures on their cost bases.

“Our chamber, and the wider chamber network nationally, have been calling for Government intervention for months to assist businesses facing astronomical increases in their overheads and as such this announcement is well-received.

“It will allow many firms that were facing the prospect of closure, or at the least having to lay off staff or reduce output, to keep going through the winter.

“However, the exact level of support will vary greatly from business to business depending on the detail of its contract, so some will inevitably do better than others.

“We now need action to get this saving passed onto business as soon as possible – every day will put some firms closer to the edge and they cannot hang on much longer.”