Two Dorset organisations have been guarded in their response to the government announcement about the energy price cap.

Dorset Chamber chief executive Ian Girling said: “This cap is welcome and a step in the right direction, but for some businesses it may not go far enough.

“Certainly, it will mitigate the worst impact of the energy costs crisis and give many directors and owners much needed breathing space over the winter months especially as we believe it will be applied at source which means it will be easier to access and involve less red tape.

“But six months will go very quickly indeed and there must be a plan in place for when the cap expires to ensure prices don’t simply revert to where they were before, which would leave many businesses facing a cliff-edge and others unable to survive, especially those in energy intensive sectors.

“Energy costs are just one element contributing to the most economically challenging time since Brexit, with businesses also facing labour supply shortages, supply chain issues and higher costs generally.

“These problems will not disappear and although the price cap is welcome, more support will be needed and I look forward to seeing what further assistance may be provided in the Chancellor’s mini-Budget on Friday.”

Simon Boyd, managing director of Christchurch-based John Reid & Sons (Strucsteel) Ltd, said: “The price cap is to be broadly welcomed as it is significantly less than the rate we have been quoted by industry suppliers although it is still an increase of 100 per cent on our current cost.

“On the face of it, it is more bearable although it is incredibly important that the supply chain passes all of the savings on. If so, I am confident that the price cap will prevent an immediate increase over the next six months after which time it is inevitable that more support will be needed unless conditions in the energy market change.”