Harrogate’s mixed reaction over Prime Minister’s new cost of living plans with a warning over tough times

Speaking after the Government unveiled a range of new plans, including fixing the energy price cap at £2,500 a year for a typical home for two years from October 1, David Simister, Harrogate District Chamber of Commerce’s chief executive, said: “I welcome the fact the Prime Minister has included businesses in her support package, but for some it will be too little too late, and unlike households it’s just for six months.

"She could also have reduced VAT on energy bills, but didn’t.

“Businesses have had it incredibly tough for more than two years, and it isn’t going to get any easier.

"Surging energy costs are just one of the pressures facing businesses.

“When Ms Truss recently came to Harrogate, members of Independent Harrogate challenged her about Business Rates. Her response was that she would review them.

“This she needs to do urgently, along with looking at VAT, fuel duty, National Insurance and Corporation Tax.”

Among the measures revealed in the House of Commons today by Prime Minister Truss were the following:

1. The energy price cap will be fixed at £2,500 a year for a typical home for two years from October 1 in a deal agreed with energy price retailers.But the PM said she would not accept Labour leader Sir Keir Starmer’s call for a windfall tax and the precise financial details will not be announced until later in the month.

2 A new six-month scheme for businesses will provide similar support to that being offered to households.After six months, the Government says it will offer "focused support" to vulnerable industries.

3.The new PM said a fund would be launched to support those who are not covered by a cap, though there are no details as yet, including people who use heating oil in their homes.

4. Action will be taken to reduce the cost of energy over time, including renegotiate with the energy suppliers to agree long-term contracts, that reduce the price they charge for energy, launch a new oil and gas licensing round as early as next week and lifting the ban on fracking.The aim is for the UK to be a net energy exporter by 2040 and net zero by 2050 in a way that is pro-business and pro-growth.

Reacting on behalf of leading independent Harrogate brewers, Rooster’s, Ian Fozard said the Prime Minister’s announcements, while welcome, left too much room for uncertainty for businesses in the current crisis.

“The announced measures will certainly help those businesses that were faced with uncertainty because they were, through no fault of their own, out of contract at the wrong time in the energy market cycle,” said Mr Fozard.

"But it’s still going to be a tough winter for hospitality, retail and the supply chain, though not as tough as might have been without this welcome intervention.

"Only six months of certainty has been announced so there is still a long term concern and uncertainty.

"I’d imagine that the Government will watch this closely and act/ intervene again as market conditions become clear next spring.”