Following a recent survey with its members, the British Independent Retailers Association (Bira) has revealed almost 88% of independent shops feel they are being forced into raising their prices to shoppers once the energy price jump comes into effect this autumn.

The survey was completed before Ofgem’s announcement that energy prices are jumping to 80%. Among those questioned, 65% also said they will have to reduce the number of staff or reduce wages. Furthermore, 40% are considering limiting opening hours. Sadly, almost 23% will be looking to close the business permanently or temporarily.

Commenting on these findings is Andrew Goodacre, Bira’s CEO.

“Businesses are under great pressure at the moment. With some concerned they need to reduce hours or even close permanently, it is incredibly worrying for us and the local economy.

“There has been no specific help coming through from central or local authorities to help businesses struggling with their bills. While some areas may have hardship funds or slight reductions in business rates, this is not seen across the country. It is clear to us that businesses are being targeted by energy providers to make up for any restricted price caps on consumers.

While business rate relief would be welcome, small businesses would still be paying 100% more in comparison to last year

“We asked the Government not to do this, because as long ago as last October we were seeing huge increases in retailer energy bills. More recently it has been 500% and keeping rates lower would have helped indie retailers absorb the higher energy costs.

“They will certainly need help as the rates for electric are increasing daily. We have just been told that one provider is charging 94p per KWH for electric; the highest we have seen so far.”

Bira has written an open letter to the two leadership candidates, Rishi Sunak and Lizz Truss, urging them to act. In particular:

• Maintain 100% business rates relief for retailers;
• Persuade energy companies to place a cap on energy increases for businesses;
• Reduce the multiplier for small businesses from 2023/24;
• Cut VAT for retailers to stimulate demand;
• Provide more funding to encourage investment in low-energy technology in retail shops and. Therefore protecting retailers from higher energy bills in the long term.

Goodacre also urges independent shops to contact their local MPs to detail their own experiences.

For further information on Bira, which works with over 3,000 independent businesses of all sizes across the UK, please click here.