Tiverton & Honiton’s MP Richard Foord is demanding the Government rescue hundreds of small local businesses from soaring energy bills, warning that lack of action could see the area’s high streets turning into ‘ghost towns.’

Since businesses are not covered by the Ofgem energy price cap, many are expecting to see their bills skyrocket by 400% in the coming months.

The Liberal Democrat’s have proposed a rescue package that would offer grants of up to £50,000 to help small businesses cope, giving them a lifeline to keep their doors open.

The plans would benefit 2,783 small and medium-sized businesses in Tiverton & Honiton, 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% 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 spiraling 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.

Richard Foord, Liberal Democrat MP for Tiverton & Honiton, said:

“Our high streets risk being devastated by rising energy costs. Small businesses are the backbone of our communities and are going to be hit hard by sky-rocketing energy bills, but the Conservatives just don’t seem to care.

“Local shops, cafes and restaurants that soldiered on through the pandemic, could now be taken down by soaring energy costs and close their doors unless the Government steps up urgently.

“We need support with energy bills now to save our high streets, stop small businesses from going under, and keep prices down for local people.

“We’ve known this bill hike was coming for months and the Government has done next to nothing. We cannot waste more time.

“The new Conservative Prime Minister must act immediately to save local businesses and bring forward legislation to protect people who run small businesses as soon as Parliament returns on Monday.”