Cost of living: Why energy bills threaten to lead to business closures by Harrogate BID

Chair of Harrogate BID Sara Ferguson says rising business costs have to be addressed urgently by new Prime Minister Liz Truss.

It’s an issue Sara Ferguson understands from her own experience.

As the owner of Caffe Marconi at 2 Princes Square, she says rising costs have to be addressed by new Prime Minister Liz Truss to prevent business closures.

“As the owner of an energy-hungry business, I am very concerned about how much my gas and electricity bills are set to rise," said Harrogate BID Chair Sara Ferguson.

"I, for one, will be looking carefully at our energy consumption and where possible look at reducing it where I can.

"The fact is businesses are already closing, and without Government intervention, it will only get worse."

If it was only energy prices which were proving problematical, that would be one thing, she added.

But the price of electricity and gas joins a growing list of challenges piling up from the hangover of the pandemic and the Ukraine conflict.

“Back in April our VAT rose from 12.5 per cent to 20 per cent, there was a rise in the minimum wage and National Insurance,” said Sara Ferguson.

"The cost of our ingredients is rising and as inflation rises, so do our costs.

“The new Prime Minister needs to address all of the above and, if possible, reverse them.

"At the same time, they need to cut VAT on gas and electricity, bring in an energy price cap for businesses and review business rates.”