HUNDREDS of hospitality business in the Totnes Constituency face a cost of living cliff edge, it is claimed.
It is feared thousands of businesses could go bust – ripping the heart out of communities.
More than 220 businesses in the Totnes Constituency will face a £1,054,163 energy bill increase once Government support is slashed in April, new analysis from the Liberal Democrats has revealed.
The analysis shows the average bill increase per business is likely to be £4,685. This ranks Totnes as facing the 19th largest rise out of 650 constituencies across the UK - placing it in the top three per cent of areas hardest hit by the energy price hike.
According to official statistics, in Totnes Constituency there are 225 pubs, restaurants and cafes at risk, facing a rise in energy bills by thousands of pounds.
The Government initially capped the cost of business energy, but from April will instead pay a small proportion of businesses’ increased costs, meaning many pubs, cafes and restaurants will see a 90 per cent cut government help, says the Lib Dems.
The party is calling for the government listen to businesses about the risks they are facing before withdrawing support.
Caroline Voaden, Lib Dem Parliamentary Candidate for Totnes, said: “Countless businesses in our area are facing a cliff edge this year. Our pubs, restaurants and cafes have endured so much over the past few years, people will be devastated to see any more harm to our local high streets.
“They are the lifeblood of our thriving local communities in south Devon and the Government must give businesses the support they need to survive the impact of this hike in energy bills. A windfall tax on the obscene profits being made by oil and gas companies would be a good place to start – none of them expected to make anywhere near the profits they have seen over the past year.
“Ministers in Westminster must not wait a moment more. Liberal Democrats are calling for them to intervene and think again about this change - if they don’t, we could see thousands of businesses, including pubs, restaurants and cafes going bust. This could rip the heart out of our communities.”