EASTLEIGH Liberal Democrats have warned local high streets will turn into ghost towns as businesses will be killed off by rising energy costs.

Lib Dems in Eastleigh have demanded the Government offer more support to hundreds of small local businesses in the area who are facing soaring energy bills.

Proposals by the party would include grants of up to £50,000 to help small businesses cope, giving them a lifeline to keep their doors open.

Under the package, businesses would be able to apply for grants covering 80 per cent of the increase in energy bills for a year.

The plans would benefit 2,427 small and medium-sized businesses in Eastleigh, ranging from family-owned high street shops to hairdressers.

The Lib Dem proposed scheme is estimated to cost £10 billion nationally and could be met by reversing the planned tax cuts for big banks, which are seeing their profits grow with rising interest rates.

READ MORE: Pubs warn of closure 'bloodbath' in cost of living crisis

Liberal Democrat MP Candidate Liz Jarvis said: “Eastleigh’s local high streets risk being devastated by spiralling energy costs, but the Conservatives don’t seem to get it or even care.

“Local shops, cafes and restaurants that survived through the coronavirus pandemic, could now be taken down by soaring energy costs and forced to close their doors unless the Government steps up urgently.”

She said: “We need this energy bailout now to save our high streets, rescue small businesses and keep prices down for local families.

“We’ve known this hike was coming for months and the Government has done nothing.”

The Liberal Democrats are also calling on the new Prime Minister to introduce laws in order to support families and businesses with the rising energy costs as soon as Parliament returns on Monday.

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Conservative MP Paul Holmes for Eastleigh said: “The Government has so far issued over £30 billion of support to people during this energy crisis as well as unprecedented support during the pandemic.

“The new Prime Minister will undoubtedly lay out clearly a new package of support to families and businesses in the coming weeks. Already families have been given targeted support and this will continue.”

Mr Holmes added: “Cllr Jarvis might also want to speak to her local Lib Dem leadership where councils can instigate business rate relief for small businesses, which they have not chosen to do.

“Of course, business rate relief to businesses was instigated by Conservative ministers and given to local councils to distribute. Locally, Cllr Jarvis and her council could follow government action and offer more support.”

Liz Truss, likely to be the new Prime Minister according to polls, has said she would use an emergency budget to "ensure support is on its way" amid soaring energy bills if she becomes the next PM.

 

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