Many York bars, cafés and restaurants could ‘find themselves on the precipice of collapse’ this spring, say councillors.
Hundreds of businesses in York are facing a £1.6 million energy bill increase once government support is slashed in April.
The average bill increase per business is set to be £4,563 once the energy cap is withdrawn, say the city’s Liberal Democrats.
They say this huge increase is set to hit the 365 pubs, restaurants and cafes in the city, leaving them in serious financial difficulty.
The cost of business energy has been capped under the current government support scheme, but from April only a small proportion of businesses’ increased costs will be covered.
Many pubs, cafes and restaurants will see what amounts to be a 90% cut in support from the UK government.
In contrast, governments such as Germany and Austria, have pledged to maintain support for businesses throughout the year.
Councillor Ashley Mason, Liberal Democrat executive member for economy and strategic planning, said: “Countless businesses across York are once again facing a cliff edge in support this spring.
“The current support scheme provides certainty for business owners over their rates and has made a material difference to the survival of many local businesses. The replacement scheme will do neither.
“Low on cash, and after years of having to endure crisis after crisis, there is a real fear that too many will find themselves on the precipice of collapse come April, unless targeted support is put in place.
“We will do as much as we can as a council, working with partners, to offer advice and support, but clearly, we won’t be able to plug this enormous hole in government support.
“We will continue to call for urgent action from the government to provide clear direction to ensure particularly small and hospitality businesses can access finance and receive the right level of support.
“These businesses are the backbone of our local economy and will play a central role in the future prosperity of York.”
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