SMEs need energy support before the winter months kick in

With the household energy price cap set to increase to £3,549 in October, SMEs are calling for government help as many will struggle to get through winter.

Responding to the energy price cap news, Federation of Small Businesses (FSB) National Chair, Martin McTague, said:

“Small businesses are left out in the cold when it comes to energy bills, with the vast majority excluded from the household energy price cap and other protections designed for domestic household consumers.

“Unlike large corporates, small firms cannot hedge costs and negotiate deals with their large energy suppliers. Many of our members say the eye-watering energy bills could be the final nail in the coffin as they struggle to get through winter.

“We don’t have the luxury to wait until the winter, and inaction from our new Prime Minister could spell the end for many businesses. Plans for urgent intervention must be finalised and ready to go on Day 1, for whoever wins the leadership contest on September 5^th.”

McTague added, “Imagine a small retailer has to come up with another £22,000 a year to keep the lights on when they are already wrestling with the jobs tax hike, rampant inflation and supply chain disruptions.

“And how is a fish and chip shop supposed to cope with a £52,000 increase in utility costs, at the same time as their customers find themselves with less disposable income because of their own rising energy bills? Not to mention the independent laundrette considering calling time on the decades-long business after being told they need to pay £8,800 more a year for gas and electricity.

“We’ve also heard examples of big energy firms refusing to supply small businesses out of concern they could go bust, and some even ask for £10,000 upfront costs.

“The cost of doing business crisis underpins the cost of living crisis. Inaction won’t just lead to spiralling prices but to a generation of lost businesses, jobs and potential.”

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