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Gloucestershire Business News

April 1st is no joke for Gloucestershire businesses

A grim warning from the Federation of Small Businesses (FSB) suggests traders and companies in the county are staring down the barrel of downsizing, a rethink of operations or closure when government energy bill relief expires on April 1st.

As a key example from the FSB, which says up to 370,000 UK businesses are in danger, a pub paying £24,528 for energy a year under the exiting government support scheme will now pay £82,539 with the incoming scheme.

Tina McKenzie, Policy Chair of the FSB said: "The jump in energy bills on April Fool's Day won't be a laughing matter but will be a shock to hundreds of thousands of small businesses, who signed up to fixed contracts when the government discount was guaranteed under the Energy Bill Discount Scheme (EBDS).

"In a week's time with the rollback of government support, this group of vulnerable small firms will see their bills revert to high rates. This cliff-edge will also hit consumers as businesses will have to raise prices to cope with soaring bills, driving up inflation."

The Salutation Inn, a pub and microbrewery near Berkeley, is among an endangered class of Gloucestershire rural pubs that rely mostly on wet trade.

Landlord Pete Tiley told Punchline: "Before the crisis, we were paying between £600 and £700 monthly on energy. The EBDS has been a joke anyway as my bills have tripled to more than £1,800 a month.

"We are obviously being more careful with aspects of consumption, such as not switching on the glass washer on quieter shifts and turning off many lights. Sadly prices have had to go up, given the added pressure of ingredients such as barley. We have held the price of our most popular home-brewed pint at £4.30 but our tenth anniversary marks a point of touch-and-go. We might break even, but that's the achievement – not making a profit – for ten years' work."

Mr Tiley, who gave up a lucrative job in the city to join the fight to keep a rustic pub going, said the untied business, with the pub rented from the Berkeley Estate, employs 10 people locally and plans to hold a special celebration on April 8th with live music and food.

"It can be demoralising to stay even in the face of energy bills, but we are keeping the faith and have no regret – what would the community do without us?"

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