Scottish businesses are finding it difficult to cope-up with the energy process rise after Brexit and Coronavirus
The Scottish Chambers of Commerce (SCC) has urged the Chancellor of the Exchequer, United Kingdom (U.K.) – Rishi Sunak for more support to Scottish firms in the upcoming Budget.
Sunak is to present the Budget on Wednesday, October 27, 2021. The Chief Executive of SSC – Liz Cameron wrote to Sunak that businesses are finding it difficult to cope-up with the energy process rise after Brexit and Coronavirus (COVID-19).
There has been an unprecedented rise in the global gas prices recently. It has risen 250% since the start beginning of 2021. He has asked to introduce a cap on energy prices for small and medium enterprises as rising energy costs are compelling Scottish firms to closures and job losses for workers. While there is a price cap for households, there is no capping for businesses and they have to take the energy at high cost.
Speaking on the occasion, Cameron said, “In the past few weeks, the UK has reached a crisis point over gas and electricity prices, and businesses are feeling the consequences. Many businesses in Scotland are still operating in survival mode and continue to recover from the dual challenges of the UK’s departure from the EU and the impact of the global coronavirus pandemic.”
She further said, “It’s impossible for firms to keep pace with these exorbitant rises in energy prices and these cost pressures are putting many businesses under enormous pressure and resulting in these rising cost pressures increasingly being passed on to the consumer.”
As per the Scottish Chamber of Commerce, with rising energy prices, the Caithness Collection, which operates three hotels in the north Highlands will see a 70% increase on its current yearly bill due to therising energy prices. It has reported a potential rise of £ 53,170 per year in electricity cost.
The Owner of Caithness Collection – Andrew Mackay said, “The hospitality sector was one of the hardest hit throughout the pandemic and recovery is already proving challenging, with difficulties finding and retaining staff, increased wage demands, other supply chain issues and tax increases. Rising energy costs are creating huge burdens and challenges for the business and it’s vital that Scotland’s businesses are afforded some buffer to guard against energy prices that are hitting them hard.”
Besides, the U.K. Government has said that it is in regular contact with the Office of Gas and Electricity Markets (Ofgem), the electricity regulator of U.K. and is trying to manage the impact of high global gas prices. It said it will continue to monitor the situation closely, including the impacts for small and medium size businesses.
