Businesses have welcomed government support for escalating energy costs - but say more is needed as they lobby ministers.

The government has offered discounts on non-domestic energy unit prices, based on an estimate of this year’s winter bills compared with a government ‘baseline’ cost which is lower than the expected wholesale prices.

Janna Sanders, manager of the Tavistock Business Improvement District (BID), said: ‘This really feeds into the work we are doing to support the Business SOS campaign which is calling for a VAT cut and business rate relief.

She said: ‘The support offered by the Government energy relief scheme is, of course, welcomed and called for as part of the SOS campaign. We will wait to see how this element plays out in the coming days and weeks for Tavistock’s businesses. The collective BID lobbying work continues as the call by industry is for a wider range of supportive measures, as per thecampaign headlines. Energy costs may be capped but the squeeze on businesses and their customers is still very real. The additional rates relief and VAT cuts are also crucial to seeing businesses survive the winter months.’

Angela Court, managing director of Tavistock Wharf entertainment venue, said: ‘We predict our energy bills will go up from £1,000 to £2,000 a month to about £5,000. So, the Government support is a help, but we need more help because we have virtually become a start-up business again, despite years of success. This is due to our on-going recovery from the pandemic which includes paying back West Devon Borough Council covid loans monthly which were issued very fairly and losing the pandemic business rate relief. Also the furlough system helped me keep my staff. This means we’re treading water with little investment planned until we fully recover.’

She said the longer term future was bright and, with the continuing survival of the venue, was down to her ‘wonderful’ volunteers and ‘loyal patient’customers and good relationships with live artists.

Antony Dwelly, co-owner of King Street Bakery, said his energy costs were capped under contract, but would have risen by five times if he was not on a fixed contract to £3,200 a month. He said: ‘However, butter and flour are up as much as 50%. The only fair way ahead was a 10% rise across all products.’ Bob Vela, owner of Bob’s East End Cafe in Tavistock, said he was lucky to only use electricity and has been forced into a 2% price rise as bills will probably double to £11,000 a month. He fears he will have to consider staffing costs if costs rise more and work more himself.