TAVISTOCK BID (business improvement district) has put its weight behind a campaign to lobby the Government to act on spiralling energy costs which are crippling the high street.

The #BusinessSOS campaign warns of mass closure and redundancies if immediate and effective action isn’t taken with manager of Tavistock BID Janna Sanders warning that last week’s announcement by New Prime Minister Liz Truss does not go far enough to save businesses.

The campaign has been founded by organisations representing over 150,000 retail, leisure, hospitality and tourism businesses and says the harm caused by the energy crisis is superseding the pandemic with the potential to cause irreversible damage to UK high streets and the economy.

#BusinessSOS is calling for

Reduction on VAT

Headline rate reduced from 20% to 12.5%

Business energy bills reduced from 20% to 5% to match domestic billing

 Business Rates Relief

100% rate relief until 31st March 2023

 

Energy Rate Relief

A discounted kwh price on all business energy bills

Janna Sanders said: ‘This is a hugely worrying time for businesses in our town which is why we’re wholeheartedly backing the Business SOS campaign and the call for significant support to help businesses to survive the cost of living crisis.

‘Following two tough years for business where they have shown such resilience, the spiralling energy costs are now having a major impact on them and their customers.

‘Having seen occupancy rates increase post-covid, we now face the very real risk of losing some of the businesses which make Tavistock the place we choose to live, work and visit.

‘Tavistock BID believes that our high street offers an experience that is second to none and that the future for our beautiful town still looks bright but, action needs to be taken now to ensure that our businesses are still around to be a part of that.’

Prime Minister Liz Truss announced an estimated £150-billion package to shield Britain from soaring energy prices last week — but with just six months’ cover for business compared with two years for households.

Janna said: The PM’s plan doesn’t really go far enough in terms of the requests the BusinessSOS campaign is putting forward.

‘The price cap will certainly help but costs are still far higher than they were back in March.

Reviewing this in three months with a view to providing further support to vulnerable businesses in six months time will almost certainly be too late for some.

‘After the difficulties of the pandemic that were felt so greatly by businesses, more needs to be done.

‘It isn’t just about the cost to the businesses either, it’s about consumers having confidence in their own economics to come out and spend money.’

Kate Nicholls, CEO of UKHospitality, said:

‘The hospitality sector is crucial to delivering the business-led growth the new Government is striving for, but we are facing an existential crisis due to soaring energy bills.

‘We’re encouraged by the new Prime Minister’s commitment to tackling energy prices, but we need to see urgent, comprehensive action. As well as a price freeze, we need to see a cut to VAT and a business rates holiday if businesses in the sector are to have any hope of making it through the winter.’

Andrew Taylor, Founder of #BusinessSOS campaign said: ‘Without immediate intervention local communities will change forever as they lose their social spaces. For the first time in living memory, energy costs are now greater than rent and increasing on a daily basis in the absence of any intervention or price cap since April.

‘After surviving the pandemic it seems ludicrous that the needs of businesses are currently not being heard and could see the billions of funding provided during the pandemic go to waste.’