85% drop in energy support package comes as firms face significant changes in business environment

31 Mar 2023

Published in: Black Country Chamber of Commerce News

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Calls go out for energy support contingency plan and increased, targeted help for firms who desperately need it.

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• Energy bills remain a top business concern, as many face a drastic reduction in their support
• Energy market for businesses must be reformed to protect firms and correct market failures
• Firms are facing a further financial squeeze, with corporation tax, living wage and business rates all changing from April 1st

As businesses face an 85% decrease in energy support from tomorrow, the Chamber network has highlighted the need for an energy support contingency plan, and is calling for increased, targeted help for firms who desperately need it.

The Chamber network is also calling on Government to increase Ofgem’s power to strengthen protection for businesses in the energy market. Policy lead at the British Chambers' has said:

“We have been signalling for months that many businesses will struggle to afford their energy bills when financial assistance reduces by 85%, with many receiving a fraction of their original support. Almost half (47%) of firms say paying bills will be difficult from tomorrow onwards.

“But of the seven energy policies the British Chamber advocated for the Government to include in this month’s Spring Budget, not one was acted upon.

“Flexibility to increase support for those who desperately need it – ignored. Easing the burden of claiming VAT on energy – ignored. Funding for improved business energy efficiency – ignored. And so the list goes on.

“Government also failed to heed the calls to increase regulation of the business energy sector. The energy crisis faced by firms and households are two sides of the same coin. Yet, non-domestic customers do not enjoy the same protection as households.

“To ensure competition in the business energy sector, and solve market failures, Government must ensure Ofgem has the necessary powers to properly regulate the industry. We are also asking Ofgem and Government to introduce a ‘duty to supply’ mechanism to the non-domestic energy market, to ensure businesses can access fixed rates, providing them with certainty and stability.

“Along with the reduction in energy support, businesses are facing several other changes in the business environment from tomorrow. Corporation tax is increasing, as is the national living wage, while a number of firms will see their business rates change due to revaluations.

“These changes will have a significant impact, but Government is yet to offer any meaningful support to offset the challenges currently facing so many UK businesses.”

The Black Country Chamber continues to lobby to local and national Government for long-term support for businesses, giving them enough time for contingency planning. If you are a Black Country Chamber member and want to discuss business support, get in touch with our team via email membership@blackcountrychamber.co.uk or call us on 0330 024 0820. 

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Discover how to best manage your business energy costs, both in terms of negotiating ongoing supply contracts and exploring opportunities for retrospective refunds.

Working with Control Energy Costs (CEC), as a Black Country Chamber member you can:

• Discuss your energy requirements with a dedicated expert at CEC in order to assess potential savings to be made
• Explore a range of new technology to enhance your business' energy efficiency
• Attend quarterly interactive seminars at company sites to learn more about efficient energy and utility management. 
  

Find out more: https://www.blackcountrychamber.co.uk/membership/benefits/commercial-energy/