Small Businesses Face Utility Price Tsunami, Says UK’s Biggest Business Group
Prices That Don’t Make Sense
According to the Federation of Small Businesses (FSB), a London shop’s power bill nearly tripled from £4,724.73 to £11,589.89 (a whopping +145% climb) between Feb 2021 and Feb 2022. Gas costs? Get this – they went from £1,345.07 to £4,815.36, a monstrous +258% hike. That’s not just a pricing glitch; it’s a headline‑making headache.
Fuel, Food, and the “All‑You‑Can‑Pay” Crisis
While electricity and gas were doing their own version of an extreme sport, petrol and diesel prices were smashing records in early 2023, according to RAC’s Fuel Watch. It’s like a holiday for inflation.
Governor’s Green Light Needed
Martin McTague, FSB’s National Chair, gauntleted the Chancellor: “If the government doesn’t step in, the bright future of roughly a quarter‑million firms will fade faster than a candle in a wind tunnel.”
The consequences? Think job losses, less local spending, and a community that’s suddenly as spirited as the after‑party crowd after a quiet afternoon. In reality, it’s the very opposite: fewer smiles and more stressed faces.
Case Studies, Because Numbers Get Boring
- 23–year‑old care home bracing for “the scary new tax”—all thanks to the health & social care levy.
- An electrician who can’t afford to charge for “urgent trips” because every charge for a fuel refill becomes a budget nightmare.
- A restaurant that’s trying to survive after two years of restrictions, now staring at skies of soaring energy & food prices.
Every business is in the same boat, but some are leaky, and the leaky ones will push the whole system down.
The Fix: Think of It Like a Business Water‑Booster
“If the Chancellor tackles the cost‑of‑doing‑business crisis, the cost‑of‑living crisis should just splash out of the way,” McTague says.
- Cut fuel duty.
- Help micro‑businesses cover energy bills.
- Raise the Employment Allowance to £5,000.
- Reform business rates to kick insignificant firms out of the “loaded” system, especially in ‘levelling up’ regions.
When those measures go through, small firms can keep their heads above the rising tide—and the people they employ can stay afloat.
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