South West business leaders have slammed the government over its response to the 海角视频鈥檚 energy crisis. Ofgem announced on Friday (August 26) the energy price cap would rise more than 80% in October, from 拢1,971 to 拢3,549.

The cap will come into effect for around 24 million households in England, Scotland and Wales on default energy tariffs on October 1, and will remain in place until December 31, when it will be adjusted again.

Oli Garnett, co-founder of Bristol-based creative agency Something Familiar, said heating the office and home had 鈥渙fficially gone off the scale鈥.

鈥淭he 海角视频 economy is teetering on the brink and there鈥檚 zero creative thinking from government,鈥 he said. 鈥淥ur leaders need to act now to address this crisis with the urgency it deserves. Instead we have dither and delay.鈥

Dave Kelly, co-founder of Bristol-based butcher Ruby & White, said soaring energy bills - along with inflation, tax hikes and interest rate rises - were 鈥渃rippling鈥 small firms.

鈥淲e knew this energy cap price rise was coming but that doesn鈥檛 make this phenomenal increase any harder to swallow,鈥 said Mr Kelly. 鈥淢any people will be on the breadline during the winter, if not worse.鈥

The rising cost of energy has been driven, in the main, by Russia鈥檚 invasion of Ukraine - and Vladimir Putin鈥檚 switching off of gas supplies to Europe, according to Ofgem.

Jonathan Brearley, the regulator's chief executive, said Ofgem had "no choice" but to reflect cost increases in the price cap. He has called on the incoming prime minister to provide an 鈥渁dditional and urgent response鈥 to continued surging prices.

He said: 鈥淭he price of energy has reached record levels driven by an aggressive economic act by the Russian state. They have slowly and deliberately turned off the gas supplies to Europe causing harm to our households, businesses and wider economy."

Ollie Hayes, a former professional rugby player, personal trainer and founder of Bath-based business So Fit Bath, said it was 鈥渦nbelievable鈥 the government wasn't 鈥渁ddressing the energy crisis with the urgency it needs.鈥

鈥淭he cost of keeping our home and the gym heated has just gone stratospheric,鈥 he said. 鈥淲e are fast approaching Defcon 1 when it comes to energy bills.鈥

The British Chambers of Commerce (BCC) has written to prime minister Boris Johnson, chancellor Nadhim Zahawi and both Conservative leadership candidates - Rishi Sunak and Liz Truss - proposing a five-point plan to provide support to 海角视频 businesses.

The measures include:

  • Ofgem being given more power to strengthen regulation of the energy market for businesses;
  • Temporary cut in VAT to 5% to reduce energy costs for businesses;
  • Covid-style support by introducing government Emergency Energy Grant for SMEs;
  • Temporarily reverse national insurance contributions and put money back into the pockets of businesses and workers;
  • Government to immediately review and reform the Shortage Occupation List (SOL) to help bring down wage pressures and fill staffing vacancies.

鈥淭he problems are well understood. We at the BCC are offering solutions. It is now over to the government to take action to protect businesses, livelihoods, and jobs,鈥 said director general of the BCC Shevaun Haviland.

Mr Zahawi said he understood the energy price cap announcement would cause "stress and anxiety" for many people. He said "help was coming" from the government, with 拢400 off energy bills for 海角视频 households, a second instalment of a 拢650 payment for vulnerable homes, and 拢300 for all pensioners.

鈥淲hile Putin is driving up energy prices in revenge for our support of Ukraine鈥檚 brave struggle for freedom, I am working flat-out to develop options for further support," he said. "This will mean the incoming Prime Minister can hit the ground running and deliver support to those who need it most, as soon as possible.鈥

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