Analysis has revealed that more than 2,000 businesses in the South West are at risk of closure due to rising energy costs.
Energy support for businesses is set to be slashed by 85% by moving from a cap on the unit costs of electricity and gas to a discount covering a small proportion of the price.
According to the Federation of Small Businesses, “one in four small firms anticipate either closing, downsizing, or radically changing their business model” when support is cut in April.
Analysis by the Liberal Democrats has shown that small and medium-sized pubs, restaurants and cafes are facing an increase in bills of £231 million nationally, and of around £3,037 in Bath and North East Somerset per business.
Bath’s economy and businesses are continuing to recover from the pandemic, with High Street vacancy rates currently between 3% and 4%, compared to a UK average of 10.2%.
Wera Hobhouse, Liberal Democrat MP for Bath, commented: “The Conservative Government is failing businesses across our region. Businesses which have barely managed to survive the pandemic are now being left to their own devices to get through this energy crisis.
“If the Conservatives actually understood businesses they would extend energy support for at least another six months as Liberal Democrats have called for.
“Bath’s economy has shown its economic resilience with footfall in the city centre now even higher than before the pandemic.
“The Chancellor should not be jeopardising this recovery by abandoning businesses to massive spikes in energy bills.”
