Small Businesses Neglected by Government

Published 29th Sep 2023 by Josie Jackson

With 5.2 million microbusinesses in the UK, having a combined turnover of £808 billion*, the sector is a major contributor to the nation’s economy. However, 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 the approach of winter, microbusiness owners (those with fewer than ten employees), often those in the health and beauty industry, say they remain concerned about high energy costs and call for more tailored help, such as a regular winter support scheme for companies that need it most.

Steve James, CEO of Valda Energy, a specialist energy supplier to small businesses, comments: “Only 4% of the business owners we surveyed said they were happy with the government support in place to help with energy bills. And alarmingly, nearly one in five, facing rising costs, high energy prices and the impact of the cost-of-living crisis, said they feared closure over the next six to twelve months.”

According to the survey of 500 microbusinesses, 67% of owners do not feel the government understands their needs, with three quarters saying they have been neglected in favour of hand-outs to consumers and larger businesses.

56% cent believe the government’s Energy Bill Relief Scheme (EBRS) did not offer sufficient help over the winter months, with many believing the scheme was simply not in place for long enough. Just a third of businesses said 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% calling for the introduction of a regular winter support package this year and 41% asking for tailored support for businesses that need it most. Others are demanding free carbon audits and additional help to improve energy efficiency.

And because of additional worries relating to higher inflation and interest rates, supply chain availability, difficulties over recruiting skilled staff and industry legislation, the survey reveals that microbusinesses are struggling to plan ahead. 55% of respondents said they no longer carried out regular financial forecasts and, of those that did, only 16% were looking as far ahead as 12 months.

Steves 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. He says: “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% of the microbusiness owners that we surveyed were in favour of.”

If you're looking for more ways to gain support for your small business, the Business Live Stage at Salon International is packed full of useful seminars such as 'Building a Brand’, ‘Recruitment Matters’, ‘Software Secrets Revealed’ and so much more. To find out more, click here.


Josie Jackson

Josie Jackson

Published 29th Sep 2023

Josie supports the team with content for the print magazine, website and social media channels at HJ. Having grown up in a salon environment (thanks to her hairdresser mum) and even working as a Saturday girl before getting her degree in English Literature, Josie feels right at home in the industry. Although she’s experimented with a few creative colour looks in the past, she always comes back to blonde, and loves all things hydrating and bond building.

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