With energy prices set to skyrocket in October and January, the Government are considering grants for small businesses by potentially repurposing Covid schemes.
The predictions for energy bills are expected to have a huge impact on businesses across the UK, even more so as there is no cap on the energy costs for non-households.
To combat this, Chancellor Nadhim Zahawi is proposing a discretionary energy grant or another similar method to avoid thousands of businesses going bust in this crisis. He has asked officials to explore ways to provide state help to companies facing these rises.
The Confederation of British Industry (CBI) is warning that one in three companies are expecting their rapidly changing bills to potentially have a detrimental effect on their businesses.
The CBI is also pushing for the Government to freeze business rates for another year to avoid viable businesses from closing.
A senior energy industry source told the Times that the Government were relying on people limiting their energy usage to reduce their bill before they needed to step in, but it seems the increase will be too high for this type of solution to work.
How can you prepare?
Ensure you are informed of your current energy costs so you can make predictions for how much these will increase and know what to anticipate.
Look at the most efficient ways for your business to save energy. Whether it might be encouraging more work from home or employing small changes to electronic use.
Get in touch with your accountant to seek specific advice and guidance to navigate this difficult time.
Please look out for future newswires on grants as they become available.