Firms call for urgent support as businesses struggle with energy bill surge

Five business groups, including the British Chamber of Commerce, have written to Chancellor Rishi Sunak urging support for businesses and consumers as energy costs soar.

The groups, representing small and large businesses, bosses and manufacturers, said price rises on the horizon could push millions of people into fuel poverty and that businesses are already suffering from the steep rise in bills.

While the treasury said it was helping families with £12bn support, the British Chambers of Commerce, the Confederation of British Industry, the Federation of Small Businesses, the Institute of Directors and Make UK said businesses were likely to be faced with further costs as existing fixed tariff contracts come to an end.

They said: "The scale of the crisis has left companies with little protection while they face dealing with soaring wage, shipping and tax costs.

"Small and medium-sized businesses are the most at risk. Many companies will be left with little other choice than to pass costs on to their customers, adding further inflationary pressure."

They said that the government should focus on "supporting firms across the economy as they strive to manage these costs and protect cashflows".

Energy-intensive industries such as steel, ceramics and glass makers also needed support to be competitive internationally, the groups said.

As decarbonising energy will be key in achieving the government 's 2050 net zero target and 2035 target of a 78 per cent reduction from 1990 levels (an approximate 60 per cent reduction from today 's levels), it is paramount that affordable and secure low-carbon energy options are available to businesses.

The Greater Birmingham Chambers of Commerce (GBCC) have been supporting businesses to improve their environmental and social performance through the Sustainable Business Series, particularly when it comes to decarbonising energy.

Cutting costs and carbon through improved energy practice can support firms through the energy crisis, whilst contributing to enhanced resilience to the net zero transition and 2035 carbon reduction target.

Will Hargreaves (pictured), policy advisor at Greater Birmingham Chambers of Commerce, said: “Businesses we speak to have faced marked increase in energy costs, some doubling and costing more than six figures. We will continue to work closely with the local business community to feed the views of local businesses into the British Chambers network ”

“We understand businesses are tackling remaining issues from the pandemic and Brexit, alongside record high inflation and recruitment difficulties. For those unsure of how to address their rising energy costs, information in energy week, within the Sustainable Business Series, can support energy cost reductions. ”

The Sustainable Business Series includes practical tips, guidance and best practice examples on energy efficiency, management and consumption reductions through a range of resources, including webinars, podcasts and various blogs and videos.

See more on the Sustainable Business Series here.