Energy Relief Cuts: Small Biz Shock
When the government decided to trim the energy relief that’s been keeping the lights on for small and medium businesses, the chatter in the breakroom got louder than a neon sign on Wall‑Street.
The Pulse of the Polled
- 69% of 150 business owners (10‑100 employees) say the current relief won’t stick around long enough to make a real dent.
- Only 12% call it a “lifeline,” but two‑thirds agree it’s a valuable resource amid an uncertain economy.
- Nine out of ten (93%) worry that the Bank of England will keep raising interest rates.
- Inflation, supply‑chain headaches, labour shortages and a 22% rise in construction material costs add extra weight to already lofty bills.
- 43% of owners flag the supply‑chain crisis as their top worry.
Why the Relief Matters
Energy costs are only the tip of the iceberg for these firms. A drop in support could mean a sharper hit on the bottom line, forcing some to curb growth, pause hiring, or even re‑think their product lineup.
What Banks Say
Conrad Ford, Chief Product & Strategy Officer at Allica Bank, summed it up: “The energy relief package was a quick‑fire answer to the crisis, saving a lot of pennies and keeping business engines running. Now that it’s being pared down, many are stuck wondering how to keep the lights on while still dreaming about expansion.”
Allica’s survey reveals that 83% of businesses want banks to step up with more funding, clearer communication, or simply some friendly advice.
Keeping the Momentum
Even with the new readjustments, the goal remains the same: help businesses survive the storm and eventually go back to growing. Banks that focus on relationship banking are in the perfect spot to keep the conversation going, share expertise, and offer the extra help that often feels like a lifeline.
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