{"id":1470,"date":"2022-05-27T09:19:06","date_gmt":"2022-05-27T08:19:06","guid":{"rendered":"http:\/\/wejustcompare.com\/2022\/05\/27\/south-west-firms-slam-chancellors-short-term-cost-of-living-response\/"},"modified":"2022-05-27T09:19:06","modified_gmt":"2022-05-27T08:19:06","slug":"south-west-firms-slam-chancellors-short-term-cost-of-living-response","status":"publish","type":"post","link":"https:\/\/wejustcompare.com\/2022\/05\/27\/south-west-firms-slam-chancellors-short-term-cost-of-living-response\/","title":{"rendered":"South West firms slam Chancellor’s ‘short-term’ cost of living response"},"content":{"rendered":"

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Businesses in the South West have criticised the Government\u2019s response to the cost-of-living crisis as \u201cknee-jerk\u201d, \u201cshort-term\u201d and a \u201csticking plaster on a gaping wound.\u201d<\/p>\n

Chancellor Rishi Sunak announced a package of measures<\/a> on Thursday (May 26) aimed at helping firms and their customers struggling with rising utilities bills and operating costs, with inflation currently at a 40-year high. <\/p>\n

Among the \u00a315bn worth of support announced by Mr Sunak to MPs in the Commons, was a \u00a3400 energy bills discount for every household in the UK from October.<\/p>\n

It follows a warning from OfGem\u2019s chief executive the energy regulator is on course to raise its cap on household energy bills to around \u00a32,800 later this year, pushing average annual bills up by \u00a3800 a year.<\/p>\n

The Chancellor also announced a \u00a3650 one-off payment to eight million of the lowest-income households, and a targeted \u00a3300 payment to help pensioners getting winter fuel payments and an extra \u00a3150 for disabled people.<\/p>\n

The policies will be partly paid for by a 25% windfall tax on the profits of oil and gas firms, which have reached record levels as prices of the resources soar amid Russia\u2019s invasion of Ukraine.<\/p>\n

Nigel Pocklington, chief executive of Wiltshire-based renewable energy supplier Good Energy, described the measures as the \u201ckind of support we and the rest of the energy industry have been calling for since last October”.<\/p>\n

He welcomed Mr Sunak\u2019s decision to replace a previously announced \u00a3200 energy bill repayment scheme with a \u00a3400 grant for customers.<\/p>\n

Mr Pockilngton added: \u201cIt\u2019s taken time but it\u2019s good that the help is coming for those in need ahead of the crunching deadline of winter.<\/p>\n

\u201cHowever, like the \u2018profits levy\u2019 funding it, it is all temporary. Significant funding of energy efficiency could cut \u00a3200 off everyone\u2019s bills permanently.”<\/p>\n

Mr Pocklington suggested moving policy costs into general tax would be a “fairer and more efficient way” to pay for green investment – and said it would “cost nothing”.<\/p>\n

“Putting all the \u2018shovel ready\u2019 renewable projects into construction would help lower energy bills next year and beyond. We have seen the short-term problem addressed, but the way out of this energy crisis in the longer-term is with energy efficiency and clean, green home-grown renewables.\u201d<\/p>\n

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\n\"Good\n<\/div>\n<\/div>
\nGood Energy chief executive Nigel Pocklington.<\/span>
\n (Image: Tim Gander)<\/span>
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Dave Kelly, co-founder of Bath-based hospitality events company, Black + White said the announcement from the Chancellor was like “a sticking plaster on a gaping wound”.<\/p>\n

“One-off grants are not the long-term thinking we need. The cost of living crisis is hitting working people harder than the pandemic did, but the Government has had its guard down on this one.”<\/p>\n

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