Call for more business support as energy costs climb

With the Treasury announcing support measures for households set to be hit by a spike in energy prices, the Federation of Small Businesses (FSB) has urged officials to extend the support to small businesses.

FSB National Chair Mike Cherry said “Many small businesses face many of the same challenges as consumers in the energy market, but without the same protections.” He added that a rebate for households should be matched by an equivalent business rates rebate “to help the smallest firms which have been weathering these price increases for months already, and which desperately need a measure of protection from the energy crisis storm.”

Business leaders are also warning that some small businesses are facing energy bill rises of up to 300% with one restaurateur reporting an expected £22,000 increase in their gas and electricity bills this year.

Andrew Goodacre, Chief Executive of the British Independent Retailers Association, said “We have calculated that if the average energy bill doubles that is another £6,000 a year on average. Wage bills are going to go up another £6,000 with National Insurance and minimum wage increases in April, and business rates will go up by about £6,000 on average then too. So those businesses, whether it is a shop, a pub or hairdresser, have got to find £20,000 in extra costs just to break even.”

Kate Nicholls, Chief Executive of UK Hospitality, said “There are significantly higher energy price increases in the commercial setting which is largely unregulated. We have the ability to negotiate long-term contracts, so it is variable when this is hitting but when hospitality firms are looking at renegotiating their energy bills they are looking at increases of 100 to 150%.”

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