Social Enterprise UK responds to proposed changes to energy support for business
According to Social Enterprise UK cuts to energy support for business will not deliver savings and could cost taxpayers more. If the proposed changes go through as many as 10,000 social enterprises could face closure putting as many as 160,000 jobs at risk and costing the UK billions in lost output and tax revenue.
Peter Holbrook, CEO of Social Enterprise UK commented:
“British businesses that should be at the heart of our economic recovery face the threat of closure should the Government prematurely cut back its energy support package for business. In the social enterprise sector, even the existing package has proven inadequate, with at least 3,900 social enterprises set to close, and over 10,000 more at risk of closure. This could put as many as 160,000 jobs at risk and could potentially cost the UK billions in lost output and tax revenue. The long-term costs to the economy would likely outweigh any savings made today from cutting energy support.
If the Government goes through with further reductions in support, then the collapse of more social enterprises will become inevitable. Communities across the country will be deprived of businesses that are committed to investing in tackling social challenges and fostering inclusive growth. Supporting social enterprise today is not a cost, but an investment, one that will pay dividends when viable businesses survive these hard times and are able to drive the future recovery.”