Small Businesses in a Energy Price Free‑Fall: A Call to Action
In a recent FSB study, one thing became crystal clear: 96 % of small firms are freaking out about sky‑high energy costs. They’re already bracing for winter, so the new Prime Minister and Chancellor need to pull a miracle (or at least a practical plan) on them ASAP.
Why the Panic Is Real
- Across every sector, 71 % of tiny entrepreneurs say they’re very or extremely worried. Those running cafés, groceries, or factories top the list.
- Nearly two‑thirds (63 %) report paying more for electricity and gas this year. And 39 % have seen their bills double, triple or worse.
- In Scotland, 72 % say costs have jumped, with 49 % doubling. Wales follows close behind at 65 %.
- England’s East Midlands, London, and East Anglia show the highest shockwave: up to 67 % with two‑fold rises.
And the simple math is brutal: 45 % of businesses are hiking prices, 20 % cut energy use, & 24 % ditch planned expansions or investment.
FSB’s Bold Plan for the UK Government
Here’s what we’re asking for: a mix of fiscal support, regulatory tweaks, and a dash of humor to keep the day‑to‑day grind buoyant.
- Extend the price cap beyond homes to include sole traders & micro‑businesses (0–9 staff) and small firms (10–49 staff). If you’re buying a kettle, you should see the same protection that people get at retail.
- Cut business rates to make those soaring bills easier to digest. Think of it as a monthly paycheck boost.
- Cash‑in vouchers – remember the £3,000 relief that helped 700,000 firms during the pandemic? A fresh wave of vouchers would give small businesses a crisp lift for energy.
- One‑year VAT drop on energy usage, cutting the hefty 20 %/5 % rates. Even if you’re not VAT‑registered, the lower figures help keep the ledger tight.
- £5,000 “Help to Green” vouchers that cover audits or equipment upgrades. A quick energy efficiency makeover for the masses.
- Make a pledge against disconnecting businesses that can’t pay. A no‑upfront‑payment policy would stop the game of “pay now or go offline.”
- Ask consumers to shop local – big companies keep piling up the price‑tag; let the neighborhood shops keep the community alive.
What It Means for Everyday Businesses
Think of that hairdresser who saw a six‑fold jump in electricity costs or the sports bar that tipped £103,000 more for lights & heating. Their stories are the talc in our moral debate: they’re pulling out their own gut by cutting wages or, worse, closing altogether.
Small firms have already survived the pandemic thanks to government aid. Now they’re facing an energy crisis that could wipe out millions of jobs. The income that companies don’t have to pay is the best defense – therefore, the time for “Help to Green” vouchers is now.
Let’s Tie Up the Knot Together
It’s not just the big industry players that need to stand down insistently demanding upfront payments. The government could step in with limited guarantees to ease the cash‑flow pain. Then, for those who care about their local streets, to keep the shops open and the community beating, a reminder that because you’re buying from small businesses, you’re not just buying a product or service – you’re buying vibes, smiles, and survival.
With 5.5 million small firms at risk and 16 million UK jobs hanging in the balance, it’s time for bold action that matches the scale of this ongoing crisis before the economy tips into a recession in autumn.
