Norfolk business bosses fear Energy Bill Relief Scheme cut

Stuart Newman, managing director of King's Lynn-based Setra Wood Products, is among companies wanting ministers to do more to assist them.

And a call is to be made for Norfolk County Council to put pressure on the government to reconsider changes to the Energy Bill Relief Scheme, with the current level of support due to be cut after March.

Mr Newman, whose company stocks and distributes Scandinavian wood products, said: "As a local business employing 50 people, we are very reliant on electricity for our manufacturing process.

"We currently use 650,000 kWh per annum, and in September 2022 were paying 16p per kWh, this had been a two-year fixed agreement.

"But in October this increased by 160pc. This will give us an annual increase of £170,000."

Stuart Newman, managing director of Setra Wood Projects (Image: Setra Wood Products)

Mr Newman warned: "The energy crisis that businesses face is unfortunately going to force some to have to consider the long-term viability of their businesses, or force them to consider areas of the business where they can potentially make cuts.

"We have been fortunate to be able to invest in solar to offset some of the energy price increases, but not all businesses are so fortunate. Without more intervention things will look very bleak indeed for many businesses."

The government's Energy Bill Relief Scheme will be reduced for businesses from March (Image: PA)

David Halliday, owner of Hindringham-based brewery Moon Gazer Ales, said: "Businesses need certainty and a clear vision to be able to plan, after the energy and supply side inflation issues of the last year."

At a meeting of Norfolk County Council on Tuesday (January 24), the Liberal Democrats will table a motion about the issue.

Liberal Democrat councillor Rob Colwell (Image: Liberal Democrats)

Lib Dem county councillor Rob Colwell, who is proposing the motion, said: "Norfolk start-ups and small and medium-sized enterprises are battling with energy bills.

"I hope the council agrees the leader should write to the chancellor and demand a U-turn now to keep the cap and rates for another six months."

Chancellor Jeremy Hunt

Earlier this month, chancellor Jeremy Hunt told business leaders the current level of energy bill support for firms was "unsustainably expensive", so a reduced support scheme would have to be brought in from the end of March.