FSB welcomes First Minister’s support for small business price cap

FSB welcomes First Minister’s support for small business price cap

The Scottish Government has backed Federation of Small Businesses (FSB) calls for an energy price cap to be extended to small businesses.

The move came as First Minister, Nicola Sturgeon, gathered industry leaders at Bute House for an emergency summit on the mounting energy price crisis.

Andrew McRae, FSB’s Scotland policy chair, said: “We’re relieved that the Scottish Government is backing measures for which we have been calling for some time. Help is needed now to address the cost of doing business crisis and stop inflation galloping out of control.

“Our members are not large multinationals with the ability to absorb cost hikes or indeed negotiate terms with their suppliers. They have bargaining power akin to that of a private consumer, so should enjoy the same protections. We now look forward to seeing how the suppliers and regulator will respond.

“The price cap may not be a perfect solution but it’s important that decision-makers take whatever steps they’re able and keep the lights on in Scotland’s small businesses.”

At the summit, FSB reiterated the top three moves that it believes would be most effective in easing the cost of doing business:

  • Extending the energy price cap and other protections enjoyed by consumers – imperfect as they are – to small businesses.
  • Cutting in the main rate of VAT on non-domestic fuel bills from 20% to 5%.
  • Repurposing any unused Covid grants – wherever they sit – to support small businesses struggling with energy and other costs.
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