Utility bills 'main drivers of rising costs' for many small firms, FSB finds

Research carried out by the Federation of Small Businesses (FSB) has found that utilities remain cost drivers for 'a majority' of small firms in the UK.

28 Nov 2023

Research carried out by the Federation of Small Businesses (FSB) has found that utilities remain cost drivers for 'a majority' of small firms in the UK.

57% of businesses polled by the FSB stated that utilities were the main cause for rising business costs in the third quarter of this year.

The business group also revealed that some small firms are 'trapped' on high energy tariffs.

The FSB is calling for firmer action from regulator Ofgem to protect the small business community against the 'mis-selling of energy contracts' and prevent small firms from becoming trapped in unaffordable tariffs.

Martin McTague, National Chair of the FSB, commented: 'While the fall in October's energy price cap contributed to the slowdown in inflation, it's important to point out that business tariffs are not protected by the cap, and many small firms are still living with higher utility bills, putting them under continuing stress.

'Giving microbusinesses the flexibility to cancel a contract through a 14-day cooling off period would deter pressurised sales tactics and help avoid some of the difficulties we saw last year when small firms found themselves trapped on high fixed tariffs.'

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