Nicola Sturgeon has said the looming energy price cap rise must not “be allowed to go ahead” amid dire warnings lives may be lost as some face the prospect of freezing or starving this winter.
The First Minister said many families face “destitution and devastation” if household energy prices increase in October.
The price cap is expected to reach £3,576 and will gradually rise to more than £4,000 by the new year before peaking at £6,000 by April.
Her warning came as Citizens Advice Scotland (CAS) today said
people were already “hanging by their fingertips” due to a “toxic cocktail” of soaring energy bills, growing inflation and higher interest rates.
Meanwhile, business leaders have warned that traders risk being forced to close their doors due to the cost-of-living crisis placing an “irresistible force” on the tourism industry.
Ms Sturgeon is to convene an emergency summit with major energy suppliers, including ScottishPower, OVO Energy and E.ON.
She said renationalisation of energy companies “should be on the table” but stressed the Scottish Government does not hold the relevant powers to take action.
She has urged the UK Government to work with ministers in Holyrood to solve the crisis.
Ms Sturgeon said: “This further increase in people’s energy bills can’t be allowed to go ahead because it is making it impossible for people to provide the basics for themselves and their families, but it is also continuing to fuel inflation, which, of course, is causing the problem in the first place.
READ MORE: Scots in legal fight to block October energy rises
“I want to make sure the Scottish Government, working with energy companies, other stakeholders in Scotland, that we are genuinely doing everything we can at our own hand to help here.
She added: “I want us to come together to call on the UK Government to take the action only it can take.
“There is a looming disaster that is already unfolding but it is going to get worse. This is going to cause destitution and devastation, this will cause loss of life if real action is not taken to stem this crisis.”
The UK Government said it was providing a £400 discount and £1,200 of direct support for the most vulnerable and said 22 million households were protected by the price cap.
CAS said soaring energy bills are driving “frightening” demand for advice around food insecurity.
Comparing the first quarter of this year to the financial year of 2021/22 as a baseline, demand for cost-of-living utility advice was up from 26 per cent to 35%, while demand for food insecurity advice was up from 36% to 45%.
Meanwhile, views of the online advice page “struggling to pay your energy bills” were up 120% and views of the online advice page “Get help with bills” has increased 119%.
The charity said more than one in 10 of the utility cases it deals with also see a client need food bank advice.
READ MORE: Iain Macwhirter: The left know that nationalising energy firms would be nigh impossible
CAS chief executive Derek Mitchell said: “What we are seeing is frankly frightening. More than one in every 10 people seeking help with an energy issue also requires help with food insecurity.
“Let’s be absolutely clear what that means – some people face the prospect of freezing or starving this winter.
“This crisis is affecting everyone, but some people are especially at risk – our data shows higher demand for advice from council tenants, those out of work and those unable to work.
"That to me suggests broad support alone will not be enough – there needs to be targeted help for the vulnerable.
“We are seeing these issues before a toxic cocktail this winter
of soaring energy bills, growing inflation and higher interest rates.
“People are hanging on by their finger tips and it’s the summer.
How are they expected to cope when the temperature drops and bills rise?”.
Scottish tourism bosses said that over the last couple of weeks, warnings about the impacts of the cost-of-living crisis on businesses has become clear, with visitors staying away during the summer and costs for traders soaring.
Inflation has now soared to a 40-year high of 10.1%, adding further squeeze to Scotland’s tourism sector, which had been hoping to enjoy its first full summer season after pandemic restrictions.
Fiona Campbell, chief executive of the Association of Scotland’s Self Caterers, told The Herald it was the “most significant challenge” for the tourism sector as a whole.
She said:“The market is down in terms of numbers of visitors and there has been a fall in family visits and onward spend across the sector. This illustrates a fall in consumer confidence.
“Cost of utilities are also a significant concern, as is the increase in interest rates. Combined, this represents an irresistible force in making business conditions more challenging, and the ability to deliver a profit less possible.
“This is exacerbated by the huge challenges that businesses have faced over the last two years. At best, it will drive a lack of investment, at worst, business closures.”
READ MORE: Boris Johnson rejects plan for cost-of-living emergency budget
The Scottish Government has set up a new tourism industry leadership group to help the sector continue its recovery, with SNP Tourism Minister Ivan McKee pointing to “different challenges impacting the sector”, including the cost-of-living crisis and Brexit.
The group, chaired by Mr McKee, will also help to deliver the national tourism strategy, Scotland Outlook 2030, by attempting to grow the value and enhance the benefits of tourism across the country.
Pointing to the self-catering sector, Ms Campbell said the introduction of the Scottish Government’s crackdown on Airbnb-style short-term lets remains “the biggest threat” to smaller businesses.
She also claimed councils were “pushing the boundaries” of the legislation and warned some local authorities will struggle to implement the scheme before October, when it begins to roll out.
Under the plans, local authorities will be required to establish
a short-term lets licensing scheme by October 1 and existing hosts and operators will have until April 1, 2023 to apply for a licence.
Councils have also been given the power to introduce a shot-term lets control area, although SNP ministers will be able to veto any plans from local authorities.
Ms Campbell said: “It is clear local authorities are going beyond the Government’s policy intention and pushing the boundaries set by their guidance.
“Around half of councils have launched public consultations into their proposed licensing system, enabling stakeholders to comment on their draft policy statements and additional conditions.
“With many draft policies not going before committee before the mid or end of September, local authorities will barely have time to implement the schemes by October 1, and operators will be unaware of the reality of the financial and administrative challenges that face them until the very last minute.
“This is an untenable situation for small businesses.”
The Scottish Government has insisted the plans to regulate
short-term lets are proportionate and up for individual councils to shape.
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