Energy Crisis Is Putting Thousands Of UK Businesses At Risk
Spiralling energy costs could cause thousands of UK businesses to collapse if further government support is not granted, the Confederation of British Industry (CBI) has warned.
The CBI has urged the government to act, recommending it freezes business rates for another year and rapidly implements targeted support. Without this support, the CBI warns that otherwise viable businesses may collapse.
Two-thirds of businesses will face a substantial increase in their bills over the next three months, with a third of those facing a jump of more than 30%.
“Firms aren’t asking for a handout. But they do need autumn to be the moment that the government grips the energy cost crisis. Decisive action now will give firms headroom on cash flow and prevent a short-term crunch from becoming a longer-term crisis,” commented Matthew Fell, CBI chief policy director.
“With firms under pressure not to pass on rising costs, there is a risk that vital business investment is paused or halted entirely. That, in turn, could pose a real threat to the UK’s economic recovery and Net Zero transition.”