Scotland's Economy

Scottish Government calls for more support for businesses

September 21, 2022 by No Comments | Category Uncategorized

Energy policy is reserved to the UK Government and we have been calling for it to introduce a business energy cap for some time. I welcome that it has now done so, but without substantial reform to the energy market there is a real risk that this temporary measure will prove to be inadequate.

Given the increased cost of borrowing this support must be funded, in part, by targeting windfall gains in the energy sector.

Scotland already generates the equivalent of nearly 100% of its electricity needs from renewable sources and we have the people, skills and natural resources to become a powerhouse of renewable energy, bolstering our energy security and helping to meet our climate obligations. However, this is contingent on the UK Government making the necessary reforms to support the sector. These must include changes to the current approach to electricity transmission charging to ensure the sector is supported and competitive. The UK Government also needs to match the more generous levels of support provided by EU countries such as Germany.

The powers and resources needed to tackle the cost of living emergency on the scale required – access to borrowing, welfare, VAT on fuel, taxation of windfall profits, regulation of the energy market – lie with the UK Government and we have continually urged it to use all the powers at its disposal.

We will continue to do everything within our resources and powers to help those most affected.


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