Energy crisis: Harrogate MP Andrew Jones defends government response

Business leaders wrote to MP Andrew Jones this week with warnings that many firms are facing closure due to soaring energy prices.

In response, Mr Jones said long-term progress had been made in the move away from fossil fuels and that the government was providing support for businesses and households during the current crisis.

He said in a letter: "Renewable capacity in the electricity market has increased from 2.3% in 1996 to 49.7% today, according to the UK Energy Brief 2022.

"Even though renewable energy is supplying more of the market, its cost is linked to wholesale gas prices.

"What the above shows is that there are no easy short-term fixes to reduce our dependency on gas and oil. But the long-term decisions that have been taken are beginning to bear fruit."

Mr Jones was writing in a letter to the Harrogate District Chamber of Commerce which also contacted Skipton and Ripon MP Julian Smith and Selby and Ainsty MP Nigel Adams about its "grave concerns".

Chamber chief executive David Simister urged the Conservative MPs to put pressure on the government to "act now" and help businesses before they reach "tipping point".

In response, Mr Smith said in a statement he was "extremely concerned" about energy costs and that he would "put pressure on ministers to do more".

Meanwhile, Mr Jones also highlighted the support already being provided to businesses and families, including a £400 grant for all UK households from October.

Homes in council tax bands A to D should have also received £150, while eight million low income households will get £650 on top of this. There are also £300 payments promised for eight million pensioners.

For businesses, Mr Jones said a new rates relief will support investment in property upgrades from 2023 when a seperate small profits rate will also mean around 1.4 million businesses continue to pay corporation tax at 19% or none at all.

Mr Jones added: "Business owners, those who work for them and their customers are also domestic gas and electricity users and you will know that a lot has been done in respect of shielding everybody from rising prices.

"I wanted to highlight that support for businesses and employees is already of scale."

His comments come as the government has previously said there would be no new policies before a new prime minister is in place. The new Conservative Party leader - and prime minister - is set to be announced on 5 September.

Liz Truss is the current favourite to replace Boris Johnson. She has promised tax cuts and recently hinted at direct financial help for hard-hit households.

Her rival, Rishi Sunak, has vowed to introduce more targeted support for households, including a reduction in VAT on domestic energy bills from 5% to zero.

By Jacob Webster, Local Democracy Reporter