1 in 4 small firms has said they may have to close, downsize or restructure if energy bills relief ends in April next year, a new survey by the Federation of Small Businesses (FSB) has revealed.
Small firms’ survival during the ongoing energy price crisis will depend on continued government support through Energy Bill Relief Scheme (EBRS) beyond March 2023, according to a new FSB energy survey published on Wednesday.
The survey, which measured the impact of the energy price crisis on small businesses, shows small firms await with both hope and anxiety for clarity on whether they will still be eligible for support amid the ongoing government review of the 6-month scheme, which is due to end on April 1, 2023.
This rises to 42% of firms in the accommodation and food sector, followed by the wholesale and retail (34%), and manufacturing sectors (29%).
In response to the eye-watering bills, nearly half of small firms (46%) have already raised prices although it has been impossible for them to pass on full costs to consumers tightening their belts amid the cost of living rises.
FSB Development Manager for Hampshire, Dorset and Isle of Wight – Nicky Kildunne said:
“Our research indicates that small firms are being held back from investment and are at the brink of collapse because of sky-rocketing energy costs. It’d be a real shame and great loss to our economy if those who managed to get through the pandemic and this tough winter with government support end up closing their businesses because relief ends too sharply in April.
“Latest OECD forecasts suggest the UK economy will suffer the biggest hit from energy crisis among G7 nations. But the tides can be turned if the government extends the period of energy support to struggling small businesses after the EBRS ends in April next year.
Article continues below this advertisement “Business size must be taken into account as a relevant factor in the government review of the EBRS, given the stark impact on small firms which have typically lower margins and are least able to deal with the rising costs. It can’t be a purely sector-based decision, otherwise it’ll lead to deadweight and unfairness.”
Wow that’s a massive news breaker from the FSB! What next will they come up with? That not breathing could result in morbidity issues??? How much do we pay that quango???
People still don’t realise the plan from Day 1 was to crash the economy and bring in a social credit system.
It’s coming!
You will own nothing but be Happy.
The former may be spot on, but the latter, Being Happy, is most unlikely as we are left with the dregs of our own and the worlds trash to live, travel, socialise and be treated amongst, whilst the ‘better classes’ have private cars, private dental and health care, live in leafy lanes well away from such rubbish, and never mix at work or on vacation with such vile beings.