Baker Tilly Mooney Moore : Reaction to the Prime Minister's energy support package

Reacting to the Prime Minister’s energy support package announced today,?Darren Bowman, Business Recovery and Insolvency Partner at Baker Tilly Mooney Moore said:

“Including businesses across the UK in the energy support package is a welcome step in the right direction, yet companies here now need urgent detail on how and when it will be distributed in Northern Ireland.”

“The crippling charges businesses are already dealing with, paired with the anticipated inflationary increase to 14% before the end of this year, leave many exposed to serious cashflow problems. Across all sectors, any sudden squeeze on a company’s cashflow will put them in dangerous territory. We know this is the biggest cause of business failure, so this support will be vital as overhead costs skyrocket throughout the winter.”

“Under the current pressure, and unfortunately in spite of today’s announcement, more companies will need to consider their rescue options to avoid insolvency. Options for survival, including Company and Partnership Voluntary Arrangements do present an opportunity for recovery. This is a dangerous economic climate and companies must seek early and informed business advice to withstand it.”

Reacting to the Prime Ministers statement on the Energy crisis,?Retail NI Chief Executive Glyn Roberts said:

“The six-month cap on energy costs for businesses is a positive first step in providing support for our members and it is welcome that the Prime Minister has given a commitment that this will equally apply to Northern Ireland.”

“However, Government needs to go much further to provide additional support to small businesses struggling with this energy crisis. This should include Business Rates relief, VAT reductions and the reversal of the National Insurance hike”

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