Chambers Wales reacts to new energy cap proposals

New Prime Minister, Liz Truss, has today announced plans to freeze the cap on energy bills, meaning the average household will pay no more than £2500 a year.

The plans, which will be funded by public borrowing have received mixed reactions, with Opposition Party leader Sir Keir Starmer saying that “the plan will not “come cheap” and that the PM’s ruling out a windfall tax on energy company profits shows she is “driven by dogma” and “it’s working people who will pay for that”.  However, following yesterday, which saw the value of Sterling fall to a 37 year low of $1.14 as fears mounted,  Sterling’s performance has rallied slightly since the PM’s announcement.

Paul Slevin, Executive Chair, Chambers Wales South East, South West and Mid, said: “While we welcome the announcement by Liz Truss that businesses will be given the equivalent help on energy bills that is being offered to consumers, we are disappointed with the lack of detail and clarity in this announcement.

“While measures for households are set to be in place for two years, it will be of little comfort to business across Wales that support for businesses will be in place for an initial period of only six months.

“Businesses need long term security to be able to plan ahead and so it remains to be seen whether this package of support will go far enough in delivering the support our members and businesses across Wales so desperately need.

“In the aftermath of Brexit and the Covid-19 pandemic, soaring energy costs are undoubtedly a source of immense worry for businesses. Unsustainable bills risk the loss of jobs and even collapse for many businesses that are the backbone of the Welsh economy.

“We sincerely hope to that the support for businesses announced today will be extended far beyond the initial six-month period, as Welsh businesses need clarity and support to get through this crisis, and they need it with immediacy.

“We will continue to work with our members, businesses and both the Welsh and UK governments to ensure companies across Wales are fully supported in all measures announced.”

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