Calls for energy bills bailout to stop thousands of businesses from facing closure this winter

The Liberal Democrats have demanded a £10 billion energy bailout fund to save struggling businesses in Wales from soaring energy costs.

The party’s Welsh Leader Jane Dodds MS said that the energy crisis is having a “COVID like” impact on small and medium sized businesses and that equally drastic action needs to be taken by the UK Government in order to stop Welsh towns becoming ghost towns.

Although the recent rise in energy prices are expected to have a large impact on households across the UK this winter – unlike residential properties there is no cap on how high costs can rise for businesses.

There are growing concerns about the devastating impact the hike in costs of businesses, combined with people having less disposable income will have on retail and hospitality businesses this winter.

The Liberal Democrats are calling for an energy bailout, including grants of up to £50,000 to shops, pubs, restaurants and all small businesses to help them cope with sky-rocketing energy bills.

Under the proposals, small and medium-sized businesses would be offered government grants covering 80% of the increase in their energy bills for one year, up to a maximum of £50,000.

For example, a typical small restaurant would receive a grant of around £10,000 to help with their bills.

The party argues that the plans would benefit the 1.4 million small businesses across the UK, from high street shops to local pubs and cafes.

Commenting Welsh Liberal Democrat Leader Jane Dodds MS said: “Welsh high streets face being turned into ghost towns and unemployment could sore as Conservatives fail to take any action or even seem to care about rocketing energy bills.

“Our local shops, pubs and restaurants could all close their doors for the last time over the coming months unless the government steps up urgently.

“This is a particular concern in Wales where small and medium sized businesses are the backbone of our economy and provide a high percentage of our employment, with this is even more the case in rural areas of Wales.

“We need an energy bailout now to save the high street, rescue small businesses, keep people in their jobs and keep prices down for families.

“This could be funded by reversing the Conservatives’ tax cuts for the big banks, and focusing on saving our struggling small businesses instead.

“The new Conservative Prime Minister must get the Government’s act together and bring in legislation to protect families and businesses from soaring energy bills as soon as Parliament returns, or they risk crashing the entire economy.”