YORK businesses have spoken out over the impact of the cost of living crisis - with costs spiralling and visitor numbers falling.

And one council chief admitted that "alarming increases in inflation and energy costs" were creating a "hugely difficult period" for many businesses across the city.

York is seeing a combination of lower footfall, reduced hotel occupancy and lower spending, according to York Retail Forum.

City of York Council figures reveal that York’s high street footfall in July this year was down by 15.2 per cent compared to July 2019, while the shop vacancy rate in York stood at 7.69 per cent, figures which match pre-pandemic levels.

The council stressed that York is still doing better in comparison to other parts of the UK, as footfall for the whole of North Yorkshire is down 18.6 per cent and across the country that figure is 19 per cent.

But York Business Institute says the latest retail figures show that footfall was down by three per cent in June this year compared to May.

York Press: York's Parliament Street Picture: Mike LaycockYork's Parliament Street Picture: Mike Laycock

David Skaith, owner of Winston’s of York and member of York Retail Forum, said: “Hotel occupancy for January to July 2022 averaged out to about 20 per cent down compared to 2019, and the figures for August and September are down over 50 per cent.

“Most businesses I’ve spoken to have had a tough July and August, with increasing costs coming in October, it could be a very difficult time ahead.”

Rachael Maskell, Labour MP for York Central, added: “Businesses are not getting support with the increase in energy costs, while the public is spending less.

“The recent rise in the unregulated Short Term Holiday Let market is resulting in people eating and drinking at their ‘party homes’ rather than staying in formal hotels and getting a takeaway rather than eating out.

“There needs to be a review as to what is happening across the city, the council are simply ignoring the reality of businesses at a time when they need maximum support. We need to build a secure retail offer and a clear and secure local economy which attracts spend.”

The council says it is working to support businesses, such as setting cash aside to help independent traders, including the Independent Retail Growth Fund which offers £25,000 towards new projects and initiatives.

Councillor Ashley Mason, the council's executive member for economy and strategic planning, said: “The alarming increases in inflation and energy costs are creating a hugely difficult period for many businesses across the city, particularly as consumers hold back on buying products or services to deal with the cost of living.

“Despite the difficult economic conditions, forecasts from Oxford Economics do indicate that York’s economy is set to continue growing over the next few years. So, we must continue to build this positive trend, support our businesses community, shop local where we can, and help maintain our city’s economic recovery from the pandemic.”