There is no one to help us: Business owners say government inaction will be the death of many firms
Families and businesses in Scottish Conservative leader Douglas Ross’s Moray constituency reacted with fury to a decision by the UK regulator Ofgem to increase the energy price cap by 80% – a 178% increase on last winter’s levels.
The latest blow comes in the wake of predictions that inflation will hit 18% early next year. And with no sign of help from the UK Government before a the leadership race for a new Prime Minister is over, businesses in Elgin – Moray’s major town – are demanding immediate action. They say the unprecedented hike could be the last straw for some small firms who are still trying to recover from Covidrelated closures.
Mum-of-one Laura Scott, 41, who with husband Leigh, 41, owns the Ditsy Teacup cafe, told The Sunday Post: “I am furious. They are not looking out for their customers or businesses. How can they think that they can go on putting the price up and up like this. Where are we going to find the money to pay?
“And if this is the cost to domestic energy users, what will it be for businesses who have no cap? The domestic charge is bad enough but as yet, we have no idea of what our commercial energy bill will be. We just have to prepare for the worst.
“This is a very worrying time. The UK Government needs to act now.”
The Scotts started their business nearly four years ago and have worked hard to come through the pandemic. But Leigh, who also runs Northgate Accounting Services in Elgin, revealed: “Our commercial gas and electric has gone up 85% in the last 12 months. We are struggling through no fault of our own or our customers.
“Our customers are being really supportive but every
single cost line has gone up. Our coffee has gone up 28% and chocolate by 30%. There is a cap on what you can charge for a scone and a cup of coffee, and you can’t keep passing that on because people won’t pay it.”
His wife added: “My fear is that we will not be able to keep our doors open. There is no help. No one steps in to protect small local independent businesses.”
Richard Cumming, 41, who runs Sirology, a men’s grooming store in Elgin, warned that, the latest energy hike will spell the death knell for some firms.
He said: “It is hard enough to pass on to customers increases in business costs, now with the hike in energy prices it is impossible.
“Businesses do not benefit in advance from the information and clarity around gas and electric costs domestic customers receive, but we will be hit hard.
“This will send some businesses to the wall.”