One in five Yorkshire businesses 'fully exposed' to energy crisis

Analysis by the Labour Party found that almost a quarter of businesses in the UK are on variable prices for their electricity bills while they await Government support.

Companies do not have an energy price cap like households in the UK and need tailored support following the energy price freeze announced by Liz Truss earlier this month.

Variable prices mean that many businesses are left exposed to the cost of fluctuating prices which will hamper any profits they have been able to make following the financial pressures from the pandemic.

Labour analysis found that 37,540 businesses were on these variable tariffs in Yorkshire, some 20 per cent of the region’s total.

Jonathan Reynolds, the party’s shadow business secretary, said: “The Government have failed to get a grip of the energy crisis and businesses are paying the price.

“Announcing a package doesn’t mean anything to hard working business owners. They need action. Dither and delay have already forced too many businesses to close in this energy crisis. Now one in every five businesses is already in jeopardy, forced to bear the full brunt of sky-rocketing bills.

“It is farcical that the Government has been unable to tellbusinesses at the sharp end of the energy crisis what they plan to do to help the,” he said, then adding that help was needed urgently “before more businesses are wiped out”.

Liz Truss confirmed in her statement to the House of Commons earlier in the month that businesses would receive an equivalent scheme to the multi-billion pound intervention in the energy market to keep down household energy bills.

She said that this would last for six months, and that further assistance would be available for vulnerable sectors such as pubs.