‘A nightmare’: UK’s small businesses forced to close by soaring energy bills
The energy crisis is tearing through Britain’s high streets, with warnings on Friday of a “lost generation” of small businesses, as the impact of soaring gas and electricity prices begins to impact cafes, restaurants, shops and salons.
Across the UK, growing numbers of traders are taking the difficult decision to close their doors for good in the face of unaffordable costs driven by record inflation, with some reporting tenfold increases in utility bills.
In yet another flashing red light for the economy, which is forecast by the Bank of England to fall into recession next year, data published today by the Federation of Small Business (FSB) shows that a majority of firms – 53% – expect to stagnate, shrink or close in the coming 12 months.
The industry body called on government to act now to shield traders. “Without help, we are facing a generation of lost businesses, jobs and potential,” said Tina McKenzie, policy and advocacy chair at the FSB.
Smaller traders employ 16 million people between them but do not benefit from the energy price cap, which puts a ceiling on costs for households but not for companies.
The huge jump in prices is slowly filtering through to businesses as their fixed term contracts – some of which last for several years – expire, and many have been shocked by the increase as bills land on their doormats. A growing number are being left with no option but to stop trading.
Local papers are reporting multiple closures, while people are taking to social media to share stories of much-loved neighbourhood shops, cafes and takeaways throwing in the towel, depriving communities of valuable jobs.
The residents of Coppull in Lancashire are now without a fish and chip shop for the first time in 40 years, after the
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