FSB warns energy costs pushing small firms to the brink
Rising energy bills and reduced consumer spending is forcing thousands of small businesses into making ‘impossible choices’.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Soaring energy costs are pushing cafes, restaurants and shops across the nation to the brink, the Federation of Small Businesses (FSB) has warned.
FSB director Martin McTague has told The Independent the rising energy bills, coupled with reduced consumer spending as household bills soar, is forcing thousands of small businesses into making “impossible choices”.
“How is an independent cafe supposed to find another £20,000 a year to keep the lights on and the coffee machine going, when they are barely breaking even as it is?” Mr McTague said.
“How can a small manufacturer find another £70,000 to keep the production line going and the staff room heated? With five-figure annual energy cost increases common, too many small firms are being faced with impossible choices.”
We need direct and immediate support from the government
Almost 15% of small-and-medium sized firms believe they may have to close or downsize as a direct result of the spiralling energy costs, according to a poll by the FSB.
The Government has faced calls to freeze bills or provide more support to households, which could give a much-needed boost to consumer spending.
However, ministers have said no action will be taken until a new prime minister is in place on September 5.
“We need direct and immediate support from the government,” Mr McTague told the paper.
“Extending energy support issued via the council tax system to the rates system, direct help with bills for those small firms which don’t pay business rates, and cutting VAT on energy consumption will make a real difference in this space.”