BUSINESS chiefs in West Dunbartonshire have called for urgent action from the Scottish and UK governments to help local firms survive in the face of rising costs.

Dunbartonshire Chamber of Commerce made the plea as energy regulator Ofgem announced the energy price cap will rise - taking the average gas and electricity bill to £3,549 a year.

Ofgem approved the £1,578 increase on the current figure of £1,971 for the average dual-fuel tariff – a rise of 80 per cent.

The cap will be almost treble what it was a year earlier last October, when it was raised to £1,277.

The local Chamber's chief executive, Damon Scott, issued his plea alongside a similar call from the Scottish Chambers of Commerce network.

The Scottish Chambers' action plan asks the Scottish Government to support businesses by: 

  • Providing a business relief package at a similar level of support from the COVID-19 pandemic. This, it says, should be aligned with support offered to communities and households.
  • Ensuring that the non-domestic rates (NDR) revaluation that is due to take place in 2023 goes ahead as planned, without any further delay.
  • Placing a moratorium on all policy measures that increase business costs for the remainder of this parliament.
  • Pausing burdensome regulations such as changes to the non-domestic rates appeals system and new taxes such as the workplace parking levy and tourism tax.

The list of actions the Chambers want the UK Government to take includes:

  • A temporary cut in VAT bills to five per cent to reduce spiralling energy costs for businesses and introduction of an SME energy price cap which has also been backed by Scottish Government.
  • Covid-style support by introducing Government Emergency Energy Grant for SMEs for the businesses most at risk from the cost emergency.
  • The temporary reversal of NICs to put money back into the pockets of businesses and workers.
  • The UK Government to immediately review and reform the Shortage Occupation List (SOL) to help fill talent shortages.

Huge impact

Mr Scott said:  “Since the start of 2021, businesses could see this crisis coming and have been consistently telling us that they are facing unsustainable rises in costs.

"The impact of these challenges on businesses, consumers and our communities must be tackled with immediate action.

“The scale of the crisis has reached a tipping point and with so many on the brink, we simply cannot afford any more inaction.

"From the UK Government, businesses need to receive emergency support for spiralling costs through grant funding, energy price caps and a reduction in VAT on energy bills.

"Urgent reform of the Shortage Occupation List is needed immediately to address labour market supply and skills shortages.

“The Scottish Government must also take action within its powers to alleviate the cost burden on businesses and households, including pausing burdensome regulations and providing direct financial support.”

Mr Scott added: “This is an incredibly challenging time for business as we lurch from one crisis into another. The reality is that the cost crisis is likely to hit businesses even harder than Covid-19 without significant government interventions.

"The Chamber has already started to shape our activities to help our businesses through this challenging period and it is evident that being connected into, and part of our supportive community is going to be even more important than ever.

"I would ask any businesses that need our support to get in touch.”