Independent retailers are being forced to hike their prices while others are considering laying off staff as the energy crisis takes hold, according to a prominent trade association. Newly published research from the British Independent Retailers Association (BIRA) says that almost 90 per cent of its members say they will be forced into raising prices once the energy tariff jump comes into effect this autumn.
The trade body is now asking members to lobby their local MP in a bid to combat the vice-like grip being imposed on companies as a result of the energy price cap rise. Last week, regulator Ofgem confirmed bills for an average 海角视频 household would surge by 80 per cent in October when the new price cap came into force, however businesses operate without a regulated price cap.
Out-of-control gas prices following the invasion of Ukraine by Russia have contributed to rocketing energy bills for both households and employers. BIRA said that, of those members questioned for its research, 65 per cent believed they would be forced to reduce either their number of employees or drop wages while 40 per cent were considering limiting opening hours.
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Around a quarter are looking to close their businesses either temporarily or for good, according to BIRA.
Chief executive Andrew Goodacre said: "Businesses are under great pressure at the moment and, with some concerned they need to reduce hours or even close permanently, it is incredibly worrying for us and the local economy. There has been no specific help coming through from central or local authorities to help businesses who are struggling with their bills which has been very disappointing.
"While some areas may have hardship funds or slight reductions in business rates, this is not seen across the country. It is clear to us that businesses are being targeted by energy providers to make up for any restricted price caps on consumers."
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Mr Goodacre added that, while business rate relief would be welcome, small businesses would still be paying 100 per cent more this year compared to in 2021.
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"We asked the Government not to do this because as long ago as last October we were seeing huge increases in retailers' energy bills," he added.
"More recently, it has been 500 per cent and keeping business rates lower would have helped independent retailers absorb the higher energy costs. They will certainly need help as the rates for electricity are increasing daily."
BIRA has written an open letter to the two Conservative leadership candidates, Rishi Sunak and Liz Truss, urging them to take action and in particular maintain 100 per cent business rates relief for retailers.
The body is also asking the two politicians to persuade energy companies to place a cap on increases for businesses, cut VAT for retailers to stimulate demand and provide more funding to encourage investment in low-energy technology in shops, among other measures. The trade body is now calling on its members to lobby their local MPs.
Mr Goodacre added: "With energy prices soaring, we all need to take action. This cannot continue and we need our local MPs to sit up and take note.
"We hope, by all our independents also taking a stand, we can create some real noise and action off the back of this, putting pressure on those in power and getting our voices heard."