Oldham Liberal Democrats are demanding the Government rescue hundreds of small local businesses in the borough from soaring energy bills, warning that lack of action could see the area’s high streets being further hollowed out.

Since businesses are not covered by the Ofgem energy price cap, many are expecting to see their bills skyrocket by 400% in the coming months.

The Liberal Democrat rescue package would offer grants up to £50,000 to help small businesses cope, giving them a lifeline to keep their doors open. The plans would benefit nearly 4,000 small and medium-sized businesses in Oldham, from family-owned high street shops to hairdressers.

This would include the 255 cafes, restaurants, pubs and other hospitality businesses in the constituency.

Under the proposed Liberal Democrat scheme, small businesses would be able to apply for Government grants covering 80% of the increase in their energy bills for one year, up to a maximum of £50,000. Nationally the proposals would help 1.4 million small businesses across the UK.

The party is also calling on the new Prime Minister to introduce laws to support families and businesses with spiralling energy costs as soon as Parliament returns next week.

The scheme would cost an estimated £10 billion and could be met by reversing the Conservatives’ planned tax cuts for big banks, which are seeing their profits grow with rising interest rates. That would include cancelling the Government’s cut to the Bank Surcharge that is due to take effect in April 2023 and restoring the Bank Levy to 2015 levels, raising £10.6 billion over the next four years.

Liberal Democrat Councillor Sam Al-Hamdani said: “Oldham’s local high streets risk being devastated by spiralling energy costs. Our high streets have already been hit hard, and this is kicking our remaining businesses while they are down. The Conservatives don’t seem to get this, or even care.

“Local shops, cafes and restaurants that survived through the Coronavirus pandemic, could now be taken down by soaring energy costs and forced to close their doors unless the Government steps up urgently. 

“We need this energy bailout now to save our high streets, rescue small businesses and keep prices down for local families. 

“We’ve known this hike was coming for months and the Government has done nothing. 

“We cannot waste more time. The new Conservative Prime Minister must act immediately to protect families and small businesses in Oldham as soon as Parliament returns.”