Ian Blackford calls for help for businesses through energy crisis
- Published
Ian Blackford calls on UK government to "nurse" businesses through the energy crisis
Ian Blackford, the SNP's Westminster leader, has called on the UK government to "nurse" businesses through the energy crisis.
He described the situation facing the UK as a "perfect storm".
Wholesale gas prices have risen 250% since January and there are warnings some industrial sectors may have to shut down operations.
UK Business Secretary Kwasi Kwarteng has defended the government's handling of the crisis.
Speaking to Sky News' Trevor Phillips on Sunday, he would not rule out a price cap for businesses and said his department was talking to industry to see what solutions would work.
But he denied reports he asked for "billions" from the Treasury to subsidise energy intensive industries.
In an interview with BBC Scotland's The Sunday Show, Mr Blackford warned that energy prices could go up further.
Ofgem has already warned that householders face "significant rises" in energy prices next spring when the price cap, which limits how much energy providers can charge per unit, is due to be changed.
Twelve domestic energy supply firms have failed in the last 13 months as they paid more for their gas then they were able to charge. Their customers have been moved to alternative providers.
"Now we know this is not going to go away quickly and actually if you end up in a situation that more energy providers have to hedge by buying additional supplies, all we are actually doing is forcing energy prices up even more and more," Mr Blackford said.
"There's a real issue about some larger providers being in quite a delicate situation and the impact that it's going to have. Government can't walk away from its responsibilities."
He said that if factories closed, it would have wider repercussions on the supply chain and unemployment levels.
The Energy Intensive Users Group - which represents firms which use a lot of energy - has said measures were needed "right now" to stop shut downs having a wider impact.
And businesses in the ceramics industry have said they may be forced to scale back or stop production due to the rise in gas prices.
"Government has to recognise we have a responsibility to nurse businesses through this to provide short term support," Mr Blackford said.
"If we end up in a situation where steel production stops in the west coast of Scotland, that helps nobody.
"We have got to make sure that companies have got the assistance they need in the short term while we get through this. If not we are going to pay the price because we're going to end up with high unemployment, we are going to end up with supply constraints."
Thatcher comparison
Earlier, Mr Kwarteng, asked on the BBC's The Andrew Marr Show if he was going to give extra help to energy-intensive industries, like steel, said: "We're looking to find a solution."
Told that that sounds like a yes, the minister replied: "No, that doesn't sound like yes at all. We already have existing support and we're looking to see if that's sufficient to get us through this situation."
He added: "I've been very clear we're not going to bail out failing energy suppliers."
On being informed of the Business Secretary's position, Mr Blackford said: "This is like Thatcher all over again, isn't it?"
Asked whether the Scottish government would support those affected by rising energy crisis, he said: "The Scottish government is already doing what it can and in particular we are making sure that we are trying to react against fuel poverty, we are trying to make sure vulnerable families, children with disabilities and so on are being supported.
"We can't fix every problem that emerges from Westminster."
He added: "I want to do as much as we can but our budget is constrained and let's remember that we don't have the borrowing powers that Westminster has. We would fix this - give us the powers to do it and we would make sure we would give businesses the necessary support."
- Published13 May
