Under the ‘Micro’Scope: The Small Businesses Neglected by Government at a Time of Crisis

There are 5.2 million microbusinesses in the UK, with a combined turnover of £808 billion*. From hairdressers and florists to cafes and garages, these small companies, many of which are owner-managed, form a collective backbone for our country. But a new survey by Valda Energy reveals that many business owners feel overlooked and misunderstood when it comes to the right support from the UK government.

With winter fast approaching, microbusiness owners say they remain concerned about high energy costs and are calling for more tailored help, such as a regular winter support scheme, for those companies that need it most.

Steve James, CEO of Valda Energy, comments:

“Only four per cent of the business owners we surveyed said they were happy with the government support in place to help with energy bills. Alarmingly, nearly one in five said they feared closure over the next six to twelve months due to rising costs, high energy prices and the impact of the cost-of-living crisis.”

The Valda survey of 500 microbusinesses, those with fewer than ten employees, revealed that:

• 67 per cent of business owners do not feel the government understands their needs.
• Three-quarters say they have been neglected in favour of more focused support on consumers and larger businesses.
• Only a third of businesses felt that the less generous Energy Bill Discount Scheme (EBDS) that followed is providing adequate support.

Valda Energy’s research highlights concerns amongst small businesses across the country, with 46 per cent calling for the introduction of a regular winter support package this year and 41 per cent asking for tailored support for the businesses that need it most.

Green issues were also high on the agenda for company owners, many of whom were looking for more support in areas such as free carbon audits and additional help to improve the energy efficiency of their businesses.

The poll also revealed that worries relating to higher inflation and interest rates, supply chain availability, difficulties over recruiting skilled staff and industry legislation, meant that microbusinesses were struggling to plan ahead. Fifty-five per cent of respondents said they no longer carried out regular financial forecasts and, of those that did, only 16 per cent were looking as far ahead as 12 months.

Valda Energy is urging industry, government and Ofgem to come together to design a tailored funded support package for those businesses most in need, including those that signed at a time of very high prices in 2022.

Steve James continues:

“Small businesses are vital to the success of the UK economy, but their collective voice is not being heard. I believe the government has a duty to act now, before demand increases over the winter months, communicating to owners what support will be available this winter and providing more levelled and sustained protection for companies over the medium to long term.”

And he argued that providing the right help might not cost the government any more money than it has already pledged. He says:

“One obvious helpline would be to see the underspend on the EBRS scheme – now expected to be in the region of £11bn - go towards helping businesses in high-rate fixed term contracts. Certainly, it’s an idea that 82 per cent of the microbusiness owners that we surveyed were in favour of.”

 

About Valda Energy

Valda Energy is committed to providing tailored support for its customers. As a specialist provider to small businesses, it understands the pressures that owners are under, and the range of emotions involved. Valda encourages customers to have one of its smart meters installed, and manage their account through its app. This gives them 24/7 visibility on their energy use and the amount of credit on their account.  Valda can also offer help with budgeting, reducing energy usage and exploring more efficient heating solutions. Payment plans can also be put in place and Valda can signpost customers to independent help and advice such as Business Debtline, British Business Bank and Energy Savings Trust.

The team at Valda Energy strives to provide the highest standards of customer service based on its in-depth understanding of the small business energy market. Get in touch to find out more.