The Federation of Small Businesses (FSB) is calling on the Government to support smaller businesses this winter after reports of a future rise to the energy price cap.
In response to the news, the price cap is set to increase to £3,549 in October, Martin McTague, national chair of the FSB, set out the group's pitch to the Government to support smaller businesses.
In the proposal, the FSB outlines four main areas which could help businesses cope with the rising costs:
- direct help for small businesses with bills through the business rate system and funds distributed by local authorities
- a temporary reduction of taxes on energy, including a reduction of higher-threshold VAT from 20% to 5%
- vouchers to support businesses adopt more environmentally friendly processes
- extending the price cap to the smallest businesses.
Between February 2021 and August 2022, FSB estimates that bills have risen by 349% for electricity and 424% for gas.
This rise would imply electricity bills for a business have increased from £4,700 to £21,200 and from £1,350 to just under £7,050 for gas.
Mr McTague said:
"The cost of doing business crisis underpins the cost of living crisis. Inaction won't just lead to spiralling prices but to a generation of lost businesses, jobs and potential."
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