A MULTI-billion pound package to help businesses with their energy bills is a “step in the right direction” but a longer-term plan will be needed, business leaders have said.

Business secretary Jacob Rees-Mogg yesterday announced a price cap for non-domestic energy users, which will roughly halve the price they pay per unit.

The scheme will initially run for six months, with more targeted help planned after that.

Hampshire Chamber chief executive Ross McNally said: “We called on the new Truss government to take immediate action to help businesses with their skyrocketing energy bills as we head into winter, so we welcome this cap. It will provide much needed relief for firms here in Hampshire and across the country, many of whom have been facing impossible cost pressures.

“Suppliers must pass on the savings created by the cap to their business customers straight away. One of the most important things for business is confidence and unfortunately, because of the outlook they are facing, many businesses are holding back on investment decisions and hiring of staff, and that is not good for them or the economy.

“This short-term cap is a step in the right direction but we need to see much more action from the chancellor in Friday’s mini-budget, specifically a comprehensive, long-term support plan to protect businesses, livelihoods and jobs.”

Ged Gorrie, owner and manager of Shenanigans in Carlton Place, Southampton, said: “We’re very pleased with what we hear. It simply means that instead of quadrupling, our bill is going to go up by double.

“The bills are certainly rising but this means more stability and allows us to get through six months with a bit of confidence and they did say they will be supporting businesses beyond that.

“It’s not the doomsday scenario that was being painted.”

Aidan Lavin, co-owner of Dancing Man Brewery on Town Quay, said: “Make no mistake that the government’s proposals to cut energy bills are a huge lifeline for businesses. With scare-mongering reports that we could face electricity charges of up to £600 per MWh, a discount to an expected £211 per MWh is not just welcome but vital for survival.

“This kind of reduction should stop people feeling vulnerable and give businesses and homes some well needed security this winter.”

The Chandlers Ford-based energy company Utilita said: “We’ve been saying for some time that energy bill support should be extended to business consumers, so we broadly welcome today’s much-needed intervention by the government.

“Without it, SMEs (small and medium-sized enterprises) – the backbone of the UK economy – would have taken the full impact of the unprecedented increases in wholesale energy prices.

“We look forward to seeing the longer-term plan when the Energy Bill Relief Scheme is reviewed in January.

“In the meantime, we will continue working closely with our commercial customers – many of whom are small businesses - to ensure they receive the support they need.”

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