Small businesses in Staffordshire are facing added financial worries following the withdrawal of Government support for energy costs.
The Energy Bills Discount Scheme, which provided financial support to companies and organisations during the energy crisis, ended on 31 March.
Business leaders in the region have expressed “deep concern” at the ongoing impact of energy costs on trading.
Research by Simply Business, one of the UK’s biggest insurance providers, has found that a quarter of SMEs have experienced significant energy cost increases, compounding economic challenges.
It shows that more than a quarter of SMEs are spending 40 per cent more on energy each month compared to last year.
The lack of a replacement discount scheme in the recent Spring Budget has added to SMEs’ concerns, with fears of financial struggles amid mounting energy expenses.
Declan Riddell, Policy Adviser at Staffordshire Chambers of Commerce, said: “We’re deeply concerned that more than 25 per cent of SME businesses are estimated to be spending 40 per cent more on energy each month, compared to last year.
“Here in Staffordshire many of our local businesses are energy intensive – for example, ceramics – and cutting back on energy usage is simply not an option.
“It’s yet another reminder of how the actual cost of doing business has never been higher.”
Bea Montoya, COO of Simply Business, said: “With the Energy Bills Discount Scheme coming to an end, the financial strain on small businesses is only set to increase.
“Our research found that almost half (46 per cent) of SME owners with more than ten employees shared that the energy crisis has impacted their supply chain, while 36 per cent have had to reduce their services or opening hours to combat the higher cost of doing business.
“And with reduced government support – set against the backdrop of a recession – we must do all we can to support small business owners.
“Small businesses are calling for the government to extend the Energy Bills Discount Scheme – without this, quite frankly, many of them will struggle to survive.”
Businesses experiencing challenges due to spiralling energy bills are being signposted to the advice and guidance (and sometimes funding) available to SMEs from organisations such as the Staffordshire Business and Environment Network (SBEN).
