Why Harrogate businesses need to be part of cost of living support from Government by Andrew Jones MP

After talking to a number of Harrogate businesses, Mr Andrew Jones said not only was a mini budget required to offer further support to households this winter but worried traders had to be included, too.

"Some businesses I have visited are in the fortunate position of signing long-term energy contracts recently which will keep their bills stable,” said Mr Jones.

"But others are not and I know they will be concerned about the immediate future.

"It is clear to me that further support will be needed and I would like to see it continue to be targeted at those most in need.

"Businesses will need to be included this time round.

"I would expect to see any support outlined in a mini budget within weeks of the new Prime Minister taking office."

The Harrogate and Knaresborough MP’s comments follow a series of alarm bells sounded recently by the business world in reaction to soaring energy prices and inflation.

On Monday, the leaders of six of the country's largest breweries warned that pubs across the UK risked being forced to close due to business energy costs soaring by as much as 300%.

Last week saw the British Chambers of Commerce demanding urgent support and submitting a five-point action plan to the Government.

Mr Jones said the principle of the Government supporting businesses had been established during the pandemic and should now be applied to the new crisis.

"During the pandemic the Government provided £21bn to small businesses via grants. This was crucial for business survival,” said Mr Jones.

"The principle of crisis support is established.

"So far the Government has announced £37billion of support for households which includes targeted payments to those on low incomes or who are otherwise vulnerable.

"Other measures, such as raising the National Insurance threshold and the National Living Wage, will mean hundreds of pounds more in pockets this year as well.

"Further support packages are being worked on in government right now, and as the situation develops fast it will be necessary to develop more support schemes.

"I know that ministers and officials in the Treasury are working on this so that the new Chancellor will have a range of options available to implement at pace.”

At the local level, the Harrogate MP said he fully expected Harrogate Borough Council and North Yorkshire County Council to step in with support as they done during the two years of Covid lockdowns.

"Harrogate Borough Council was one of the fastest authorities in the country at paying grants to businesses during the pandemic,” said Mr Jones.

"Our two local councils stepped up massively to support households and businesses previously and I know they are ready to do so again.”

In the view point of the British Chambers of Commerce, The Bank of England’s projections of a recession and consumer confidence reported by leading market research company GfK at a 50-year low are clear signs that the Government is running out of time to offer businesses and households the support they need.

To add to the economic pessimism, skills and labour shortages since lockdown ended are still causing problems, in particular, in the hospitality sector.