News
Truss unveils plan to cap domestic gas and electricity bills at £2500 per year from October
ON THURSDAY morning, September 8, the Prime Minister unveiled her big idea to help UK families cope with spiralling energy costs over the next two years.
Mrs Truss said domestic gas and electricity bills in the UK will be capped at £2500 per year from October in a statement to the House of Commons.
The announcement means that families will only pay twice as much for their energy than they did last year.
The price cap is around £1,000 less than that already announced.
It’s still about £500 more than at present.
As well as households, businesses are also expected to receive some help. Many firms are currently facing even sharper rises than households, and many fixed-rate deals for business expire this October, exposing thousands of firms to full costs that could rise by four or five times or more.
She did not provide details of relief for businesses, apart from a brief mention that a similar measure would provide for six months of protection and targeted support for businesses most at risk.
Otherwise, Liz Truss kicked support for business into the long grass for cutting by Jacob Rees Mogg.
She said she would “not give in to the other side” on windfall taxes on energy firms as “that would undermine the national interest by disincentivising energy companies we need to invest in this country.
“We are doing important business to help people and businesses get through this winter and winter whilst helping Britain secure its long-term energy supplies.
“There will be as cost to this intervention, but we are facing a global energy crisis.”
Preseli Pembrokeshire MP Stephen Crabb praised the PM and said to the House: “Doesn’t this demonstrate Mr Speaker that Conservative Governments do not stand-by when help is needed.”
Shock data released this week shows that 355,000 companies with a turnover higher than £1m are designated as high energy users – industries such as steel, glass, concrete, and paper production.
Of those, an estimated 75,972 are at risk of insolvency, and 26,720 could fail because of energy costs.
That’s in addition to the 26,000 insolvencies already predicted this year.
Without a large-scale support package from the government, more businesses will fail than during the pandemic and any other recession.
A business turning over a million pounds two years ago would have spent around 8% of that on energy costs and made profits of around £90,000.
If the cost of energy doubles to 16%, that instantly wipes out profitability, and they’re straight into a scenario where it threatens the viability of the business within a year.
Beyond the large, energy-intensive companies, smaller companies with turnover under £1m were also at risk of failure, data analytics firm Red Flag Alert said on Tuesday (Sept 6).
In Pembrokeshire, some firms have already closed their doors – one example is the popular Haven Brasserie in Nolton Haven, which said it would shut for “reasons of economic uncertainty”.
The hospitality sector, which is a huge part of the local economy, is facing a triple threat of increasing energy bills, higher supply and staffing costs, and a fall-off in consumer spending, squeezed by inflation.
Red Flag Alert calculates businesses overall will need £100bn a year in support to tackle the rise in energy bills.
The government is already under pressure over how it will finance a promised package of support for households while sticking to promises to cut taxes.
Responding to the PM’s announcement, opposition leader Keir Starmer said the argument against a windfall tax was nonsense and that energy companies’ own announcements showed investment would not be deterred.
He said the PM was focused on protecting the excess profits of energy companies who reaped their unplanned benefit from Russian aggression. At the same time, ordinary families would end up repaying the money she’d borrowed years ahead through their bills.
Keir Starmer said that strategy was a tax on families instead of hitting big corporations who had failed to invest money in energy security and infrastructure.
Community
Tractor run lights up Pembrokeshire and raises funds for charity
THE PEMBROKESHIRE ILLUMINATED TRACTOR RUN took place today (Dec 21), raising funds for two vital charities: the Catrin Vaughan Foundation and Wales Air Ambulance.
Starting at Clarbeston Road AFC at 6:00pm, the brightly lit convoy of nearly 200 tractors made its way through Withybush Hospital and Haverfordwest High Street before finishing at the Pembrokeshire County Showground.
The annual event has become a highlight of the festive calendar, drawing large crowds to witness the spectacle of tractors adorned with colourful lights and decorations.
Funds raised from the event will support the Catrin Vaughan Foundation, which provides crucial assistance to families facing hardship, and the Wales Air Ambulance, delivering life-saving emergency medical care across the region.
Organisers praised the dedication of local farmers and volunteers, whose commitment ensures the event’s continued success year after year.
(Image: Nia Marshall/Facebook)
Business
Ferry Terminal ‘extremely busy’ due to ongoing Holyhead closure
PEMBROKE DOCK Ferry Terminal has been experiencing significant congestion today as ferry services remain under immense pressure following the closure of Holyhead Port earlier this month.
The disruption, caused by storm damage, has rerouted ferry traffic through Pembrokeshire, leading to long queues and crowded facilities at the terminal.
The Herald can confirm that it has been very busy today with cars, lorries, and foot passengers queuing in large numbers. Staff are working tirelessly to manage the influx, directing vehicles and assisting passengers as they prepare to board the heavily booked ferries.
A spokesperson for the Port of Milford Haven said: “We are working closely with ferry operators and local authorities to ensure traffic flows as smoothly as possible, but the sheer volume of vehicles is causing unavoidable delays.”
Travelers are being urged to arrive early for their sailings and to remain patient as the terminal operates at full capacity.
Both Stena Line and Irish Ferries have increased capacity on their Pembrokeshire routes, deploying larger vessels, including the Stena Adventurer and the MV James Joyce, to handle the surge in demand.
From our position at the terminal, our photographer has captured photos showing long lines of vehicles, groups of foot passengers carrying luggage, and port staff coordinating efforts to ease congestion.
Authorities are advising non-essential travelers to consider rescheduling their journeys where possible and to monitor updates from ferry operators closely.
(Photos: Martin Cavaney/Herald)
Community
Festive celebrations at St Davids Cathedral this weekend
ST DAVIDS Cathedral is set to host two special events on Sunday (Dec 22), offering a blend of joyful participation and traditional carol singing to mark the Christmas season.
In the morning, families are invited to the Scratch Nativity at 11:00am. Attendees are encouraged to come dressed as wise men, angels, sheep, or shepherds and take part in an unrehearsed retelling of the Christmas story. Canon Leigh described the event as: “Complete, wonderful chaos for an hour… but with some poignant, thought-provoking moments to centre ourselves on the real meaning of Christmas.”
Later in the evening, the Festival of Nine Lessons and Carols by Candlelight will take place at 7:00pm, featuring the Cathedral Choir. The event, steeped in tradition, will see the cathedral bathed in candlelight as carols and scripture readings fill the historic space.
Doors will open at 5:45pm for those seeking unreserved seating, and a large turnout is expected for this beloved Christmas celebration.
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