Several hundred small businesses could go bust says FSB chief
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Mr Weedon explained how some small businesses had been impacted so far. The retail Chair claimed that the cost of energy bills was also the cause that some businesses may face closures, as some energy input costs have gone up by 245 percemt. There is currently no Government assistance in terms of cash back for small businesses in the UK, despite demands. Mr Weedon also discussed businesses raising their prices for consumers, in order to cover their own costs during the current economic crisis.
Mr Weedon told GB News: “I mean one thing that is behind this is… Behind the cost of living crisis, is the cost of doing business crisis as well.
“All of these import prices are being driven for example by… As we know, by energy, but businesses, small businesses in particular don’t have any of the caps and the support.
“That we as consumers all have ourselves, so, for example, we have seen businesses where their energy input costs have gone up by 245 percent.
“And there’s no cashback for them and there’s no limit on that as well.
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Mr Weedon added: “So that is driving a great deal of it, there is input prices in terms of the product being driven by a number of things.
“Obviously energy comes into that, but you know just in relationship between sterling and the dollar, has changed significantly over the last year.
“And many of these products which are coming in are priced worldwide in dollars.
“So there’s this great drive behind it, rising cost a lot of businesses have falling reserves, so they’ve been eating things out.
“They’ve been trying not to put prices up, there are I have to say based on efficacy and ONS figures, the concern is that 700,000 small businesses are vulnerable to going bust in the next few months.”
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Many British business owners feel that the Chancellor of the Exchequer, Rishi Sunak has not done enough to offer support to them during the current cost of living crisis.
The cost of energy has also impacted small businesses, as gas and electric bills have risen by 54% for all Britons.
And many UK businesses have had to raise prices, which is having a knock on effect on consumers, making things worse.
Director general of the BCC, Shevaun Haviland said: “The Spring Statement was a missed opportunity to ensure businesses have greater resilience to weather the uncertain and volatile times ahead.
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“The Government must provide urgent financial support, through the expansion of the energy bills rebate scheme, to include small firms and energy-intensive businesses.
“And he must introduce an SME energy price cap to protect smaller firms from some of the price increases.
“We also urge the Treasury to rethink and postpone the damaging National Insurance increase.
“A failure to act now will leave businesses with no option but to continue to raise prices – leading to more difficult months to come for both firms and households.”
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