COST OF LIVING CRISIS: Highland Liberal Democrats call for energy bailout grant to save high streets
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A lack of government action to protect hundreds of small businesses in Inverness from soaring energy bills could see the city turn into a "ghost town".
That it the warning of Cllr David Gregg, Liberal Democrat group leader on the City of Inverness Area Committee, who is calling on the UK Government to take action.
Since businesses are not covered by the Ofgem energy price cap, many are expecting to see their bills sky rocket by 400 per cent in the coming months.
The Liberal Democrat rescue package would offer grants up to £50,000 to help small businesses cope, giving them a lifeline to keep their doors open.
The plans would benefit 2153 small and medium-sized businesses in Inverness, Nairn, Badenoch and Strathspey, from family-owned high street shops to hairdressers.
This would include the 155 cafes, restaurants, pubs and other hospitality businesses in the constituency.
Under the proposed Liberal Democrat scheme, small businesses would be able to apply for Government grants covering 80 per cent of the increase in their energy bills for one year, up to a maximum of £50,000.
Nationally, the proposals would help 1.4 million small businesses across the UK.
The party is also calling on the new Prime Minister to introduce laws to support families and businesses with soaring energy costs as soon as Parliament returns next week.
The scheme would cost an estimated £10 billion and could be met by reversing the Conservatives’ planned tax cuts for big banks, which are seeing their profits grow with rising interest rates.
That would include cancelling the government’s cut to the bank surcharge that is due to take effect in April 2023 and restoring the bank levy to 2015 levels, raising £10.6 billion over the next four years.
Figures published by the Scottish Retail Consortium show that footfall in Scotland fell by 16.7 per cent in July compared to pre-pandemic levels. This now represents the third successive month where Scotland has had the weakest retail footfall in the UK.
Cllr Gregg said: "Inverness’ high streets risk being devastated by rising energy costs.
"If we don't do anything, we'll see our brilliant city turned into a ghost town, but the Conservatives neither seem to get it nor care.
"Local shops, cafes and restaurants which survived Covid could now be taken down by soaring energy costs. They'll be forced to close their doors through no fault of their own unless the Government steps up urgently.
"We need this energy bailout now to save our high streets, rescue small businesses and keep prices down for local families.
"We’ve known this hike was coming for months and the Government has done nothing.
"We cannot waste more time. The new Conservative Prime Minister must act immediately to protect families and small businesses in Inverness as soon as Parliament returns.
"The SNP and Greens in Holyrood are hardly blameless either. They act powerless, but under the SNP’s watch, house insulation is progressing at a snail’s pace.
"The SNP/Green government should be introducing an emergency nationwide insulation programme to bring down bills for struggling families, and fight the climate emergency."
