Companies Fear Delays in Government Aid to Quell Energy Crisis

Winter‑Ready: SMEs Take Charge of Energy Costs

Short‑notice energy hikes are a real business headache. With the new Prime Minister coming onto the scene next week, many small and medium‑sized companies are feeling uneasy about any government‑backed relief that might not arrive in time to keep their cash registers ticking through the end of the year.

The Call for Immediate Action

Tax partner Richard Godmon of Menzies LLP says businesses shouldn’t wait for a “just‑in‑time” support package. “Instead of chasing a post‑Covid safety net, it’s time to look at how you can cut energy cost straightaway,” he advises.

Hospitality & leisure tweaks: Consider trimming opening hours or even testing a three‑day work week to shave off heating bills.
Office flexibility: Shift schedules to make the most of daylight and fast‑track energy‑saving upgrades—think LED lighting or gear with a low‑power standby mode.
Tax perks: Some of these modernisations could actually qualify for enhanced tax relief, turning a cost into a win‑win.

Godmon stresses the need to think outside the box: “Start reshaping how you operate from October 1st and watch those numbers go down.”

What the New Government Might Offer

SMEs are hoping the incoming administration will roll out a quick‑response package similar to the one that came out during Covid. Ideally, it would include:

Grants and interest‑free loans with long repayment terms.
Deferred tax payments and business rate exemptions to ease cash flow.

But there’s a catch. Godmon cautions: “The Treasury is eager to keep tax revenue steady, so a temporary VAT cut is unlikely to pass. The same goes for the Health & Social Care Levy, which adds to employers’ National Insurance contributions. Think of it as a post‑pandemic revenue engine.”

In the near future, we can expect government‑backed grants and loans to be the main lifeline. More generous tax breaks? Not so much.