595 hospitality businesses in Shropshire face financial cliff edge

Nearly 600 local businesses in Shropshire are facing a huge energy bill rise of £2.5 million once Government support is slashed in April, new analysis from the Liberal Democrats has revealed.

The analysis shows that the average bill increase per business in Shropshire is likely to be £4,330. 

Official statistics show there are 595 pubs, restaurants and cafes in the county that are facing a combined hike in their energy bills of £2,576,612. This includes 160 local businesses in North Shropshire.

The Government initially capped the cost of business energy, but from April they are replacing that scheme and will instead just pay a small proportion of businesses' increased costs. This means many pubs, cafes and restaurants will see a 90% cut in help from the government. 

The Liberal Democrats are calling for the government to think again. Businesses across the country are worried about the cliff edge they’re facing this year and Ministers need to listen to businesses about the financial pressure they are under before they withdraw support. 

Helen Morgan, Liberal Democrat MP for North Shropshire, said:

“Around 160 pubs, cafes and restaurants in North Shropshire are facing a cliff edge this year and hundreds more are in the same situation across the county.

“These are local businesses that are at the heart of our communities and have already had to struggle through a torrid few years. People will be devastated to see any more harm to our local high streets. 

“The Government needs to give businesses in Shropshire the support they need to endure this energy bill catastrophe. 

“Ministers in Westminster must not wait a moment more. Liberal Democrats are calling for them to intervene and act to reduce the risk of any more much-loved local businesses going bust.”

<hr/>

Notes

Data on the number of micro, small and medium sized pubs, bars, restaurants and cafes in the UK is available from the ONS via Nomis. 

Business Energy costs (without government support) are based on estimates for micro, small and medium-sized businesses by Energy Broker Bionic from January 3 to January 6, 2023 - Average Business Energy Consumption | Energy Bills | Bionic 

Details on the Government’s Existing cap on business costs can be found here -   Energy Bill Relief Scheme: help for businesses and other non-domestic customers - GOV.UK

Details for the Government’s New support for business costs can be found here - Energy Bills Discount Scheme - GOV.UK

We then compared Bionic’s figures with the two government schemes to calculate what the difference in support levels would be.