SMEs need help with rising energy costs too, says FSB

The Federation of Small Businesses (FSB) warns that the energy price spikes, as well as a rise in base rate, is leaving the UK’s SMEs ‘exposed’.

This comes after the news that the government has launched new support measures to mitigate the impacts of rising energy bills for households.

Federation of Small Businesses National Chair, Mike Cherry, said, “A lot of small business owners will be feeling a double hit today. First off, exclusion from the Chancellor’s statement regarding support for those struggling with energy bills. And second, a rate rise that will increase repayments on a good deal of personal and professional debt, adding to existing cashflow woes just as tax rises loom.

“The government is right to help households with rising costs. It should be helping the smallest firms too, which face many of the same challenges as consumers in the energy market, but without the same protections. The household rebate 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.”

Cherry added, “Planned support via the council tax system will leave struggling community cafes, convenience stores and restaurants wondering, where is the support via the business rates system? Equally, where is the help to spread bills for the small businesses that create jobs and ensure growth in local economies? These are the very businesses which will be key to the success of the levelling-up agenda, yet the day after it was launched they’ve been left out in the cold.

“The interest rise announced today will pile yet more stress on small business owners struggling with debt. The hope, against a backdrop of spiralling utility bills and surging inflation in the round, is that it goes some way to putting the brakes on rising prices.

“To minimise the risk of sending viable businesses to the wall, the government should expand Pay As You Grow to cover CBILS as well as bounce-backs. We’d also encourage policymakers to look again at our proposals to enable those with emergency debt who are just about clinging on to convert bounce back loans into employee equity stakes, thereby alleviating pressures on small firms and spurring productivity.”

To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.