Chief Executive’s comments

Earlier this month the Government announced a new energy support package which falls short for struggling UK businesses. Despite Government efforts, an 85 per cent drop in the financial envelope of support will support the thousands of businesses who are seriously struggling.

Many businesses have been fighting for their survival for months, and rising energy costs have fast become the tipping point. While we welcome the 12-month duration of this package, its value is nowhere near far enough and means that for some firms, energy will now be a cost too far.

We understand Government must consider public finances, but any support package, short or long term, should be right for business - otherwise we’re going around in circles. The wrong type of support will continue to see business confidence deplete and Government having to revisit its package.

This is not about giving a handout to failing firms. It is about investing in British businesses, many of whom are confident about the strength of their order-books despite being hammered by eye-watering energy costs. Our economy will not be able to grow if our businesses are in decline.

Alongside an energy support package, we need an energy support strategy to get businesses on the right track to longer term efficiency.

There are several options to consider, and we urge the Government to prioritise the following three:

• Increase OFGEM’s powers: Ensure effective competition in the business energy market for non-domestic contracts by extending OFGEM’s regulatory powers to guarantee businesses access competitive fixed rate contracts, and energy providers move swiftly to pass on wholesale price reductions

• Energy production: Government to bring forward ambitious plans to enable more renewable and sustainable energy production across the UK

• National energy saving campaign: Government should launch a national campaign with support initiatives for businesses to drive down current consumption through energy efficiency measures, such as green grants and tax incentives.

This is a critical year for the UK economy and with the right focussed support, businesses can help turn the economy around and get the UK back to growth and prosperity.

We are keen to hear how your company is managing with the cost of energy. Please do share this with us by emailing chamber@cambscci.co.uk

Completing our Quarterly Economic Survey is also a good way to let us know how things have been for your business and the challenges you’re facing. QES findings are vital in our lobbying efforts because they are broken down to individual accredited Chamber-level, making sure your voice is properly heard both nationally and locally on the issues that matter. The results for Q4 2022 can be found on page 14. The next survey goes live on Monday 13 February.

VIC ANNELLS Chief Executive

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