Britain’s small businesses are heading into the Autumn Budget under mounting pressure from energy costs, with new figures showing concern has reached a record high and hospitality firms facing particular strain.
Data from the Office for National Statistics (ONS) found that 72 per cent of UK businesses were worried about energy prices, rising to 91 per cent in hospitality.
The findings have prompted The Accountancy Partnership, which represents more than 15,000 small businesses, to urge ministers to introduce targeted relief.
The figures underline the challenge facing companies as they prepare for winter, when heating, lighting and equipment costs can further squeeze already tight margins.
The timing has sharpened calls for action. Since October 1, domestic electricity in Great Britain has benefited from a temporary zero-rate VAT measure, due to run until March 31, 2027. Businesses on non-domestic electricity tariffs remain outside the relief.
Lee Murphy, managing director of The Accountancy Partnership, said the Budget offered an opportunity to ease the pressure through practical measures rather than sweeping changes.
“Energy costs remain a significant concern for small businesses, particularly those operating in sectors such as hospitality where keeping the lights on, heating premises, and running equipment are essential to operations,” he said.
The firm has proposed extending zero-rate VAT to eligible microbusinesses using commercial electricity tariffs, introducing targeted winter energy support for hospitality, and offering enhanced capital allowances for energy-efficient equipment.
Such measures, Mr Murphy argued, could help firms manage immediate bills while making investments that reduce consumption over time.
“Small businesses do not necessarily need sweeping changes to feel the benefit,” he said.
With energy costs threatening margins and investment plans, the Budget will test whether ministers can offer meaningful relief to businesses facing another expensive winter.
Leave a Comment