UK small businesses brace for 40% energy cost surge from April
Small businesses in Britain are facing a sharp rise in energy costs from April, with warnings that typical firms could see standing charges increase by 40 per cent. The surge comes as wholesale prices climb, pushing average annual bills above £5,000 for many. Industry leaders have raised concerns over the impact on companies already grappling with higher taxes and regulatory burdens under Labour's economic policies.
The crisis follows escalating tensions in the Middle East, which have driven oil prices above $100 a barrel. Since late February 2026, Brent crude has jumped nearly 30 per cent, from around $73 to over $100, amid US/Israeli strikes on Iran and disruptions in the Hormuz Strait. Natural gas prices have also soared by around 60 per cent since the conflict began.
Energy Secretary Ed Miliband held emergency talks with industry leaders and business groups on Thursday to address the rising costs. However, the meeting was described as a 'listening exercise,' with little indication of concrete government action. The Federation of Small Businesses warned that around a third of companies are due to renew energy contracts in April, risking long-term exposure to high prices. Unlike households, businesses do not benefit from an energy price cap and often sign multi-year deals. The B5 group, representing a large share of British firms, has highlighted small companies as particularly vulnerable. Meanwhile, energy suppliers have urged ministers to consider support schemes for struggling households ahead of another expected bill increase in July.
The Government has pledged to do 'everything in our power' to protect households and businesses but has yet to outline specific measures. With energy costs set to rise further, firms and families face prolonged financial pressure. The situation remains uncertain as ministers continue discussions with industry leaders.
Read also:
- American teenagers taking up farming roles previously filled by immigrants, a concept revisited from 1965's labor market shift.
- Weekly affairs in the German Federal Parliament (Bundestag)
- Landslide claims seven lives, injures six individuals while they work to restore a water channel in the northern region of Pakistan
- Escalating conflict in Sudan has prompted the United Nations to announce a critical gender crisis, highlighting the disproportionate impact of the ongoing violence on women and girls.
