If government energy support ends in April next year, 1 in 4 small firms plan to close, downsize or restructure.

UK small businesses are relying heavily on continued government support during the energy crisis if they are to survive. Currently, the Energy Bill Relief Scheme (EBRS) is available for small businesses to help battle rising energy bills. However, small firms are relying on the scheme continuing beyond March 2023, according to a Federation of Small Businesses (FSB) survey.

This survey investigated the impact of the energy crisis on small businesses and showed that small firms are waiting with both hope and anxiety for answers on whether they'll still be eligible for energy support. The six month EBRS scheme is due to end on 1st April 2023.

One in four of these small businesses (24%) said they are planning to close, downsize or drastically change their business model if they do not receive as much energy support after March 2023.

This was also the case for:

• 42% of accommodation and food businesses
• 34% of wholesale and retail businesses
• 29% of manufacturing businesses

The survey also found that 63% of businesses saw energy prices increase this year compared to last year. Around 44% claimed double, triple or higher increases in energy prices.

The FSB have said that the government can help small businesses by:

• Continuing support through the EBRS to avoid chaos from 1st April 2023
• Consider the size, not just the sector and geography, of businesses to determine who is vulnerable and eligible for support
• Help small businesses invest in energy efficiency, through incentives such as voucher schemes

If your business energy contract is due for renewal and you're worried about spiralling energy costs, enquire today to find the best energy deal for your business now.

Article by East Midlands Business Link