Zöe Franklin: “8,260 businesses across Guildford Borough landed with £20 million energy bill blackhole”

New analysis from the Liberal Democrats has shown that small and medium-sized businesses across Guildford Borough are facing a massive £20 million energy bill blackhole following government cuts to energy bills support.

On April 1st the government changed the business energy bill support from an absolute cap on the price per unit of gas and electricity to a discount on part of the energy bill. This saw energy support cut by 85% on average, leaving thousands of businesses hung out to dry.

Across Guildford Borough, the 7,075 micro businesses that employ 1-9 people will see bills increase by £14.5 million. (Around £2,058 per business.) 1,015 small businesses in Guildford Borough, there will be £4.3 million less support (£4,249 per business). The hardest hit will be our area's 170 medium-sized businesses who employ between 50-249 people. These businesses will see a £1.3 million cut or £7,922 per business.

Across the UK 3.1 million SME businesses are staring down a total bill increase of £7.6bn once the Government withdraws its energy support. In the South East of England alone over 460 thousand businesses are facing a massive £1.1 billion cut in energy support across the region.

Liberal Democrat Parliamentary Candidate for Guildford, Zöe Franklin, is leading calls locally for existing business energy support to be extended for at least another six months to ensure that businesses do not have to increase their prices or close their doors.

Commenting, Liberal Democrat Zöe Franklin said:

"The Conservative Government is pulling the rug out from underneath thousands of small and medium-sized businesses across Guildford Borough. Once again showing they simply don't understand the needs of businesses.

"Ministers either just don't get it or just don't care. They are putting thousands of people's jobs and livelihoods on the line. Our country is teetering on the brink of a recession, and this is the wrong time to be cutting energy support for businesses.

"In contrast, Liberal Democrat-led Guildford Borough Council is working hard to support local businesses including through the imminent launch of the new business decarbonisation scheme which will let businesses apply for loans to help them reduce their energy usage.

"As thousands of businesses face an energy black hole, the Government must also step up. That's why Liberal Democrats are demanding the government continue energy support to protect millions of businesses across the country."

Additional Information

• Full data for all areas - Business Energy Support - Cost to SMEs change in support - Region, Parly Con, LA - 24/03/2023.xlsx
• The British Retail Consortium has warned that retailers will need to raise their prices due to the Government cutting business energy support [British Retail Consortium]
• The FSB warned that 1 in 4 SMEs could close or lay off staff due to the reduction in business energy support [FSB].