East Lancs business struggling with energy and cost of living crisis

Pubs, restaurants and other businesses across the region have been quoted eye-watering energy bills that have doubled in the last year and many are unsure how they will survive the winter.

The Lancashire Telegraph reached out to some of the worried business owners to share their stories, as they call for Government intervention to help them get through the crisis.

Some have already decided to cut their losses and sell their business before prices rise even further.

For those braving the energy crisis storm, they will have to make drastic cuts and changes to the way they run their business.

Stuart’s Sandwich Shop, in Blackburn Road, Accrington, has been open for two years. It will close on September 30 due to rising costs.

Stuart’s Sandwich Shop (Image: Stuart’s Sandwich Shop)

Owner, Stuart Eccles, said: “We have been forced to close due to the energy bills – we just don’t know how much they are going to be.

“It was a hard decision to make but I don’t want to be in a position where I have to close suddenly – I wanted to let staff know in advance."

Stuart said his energy bills have doubled in the past year and he his now paying £600 a month.

The cost of supplies have also made a significant impact and Stuart says they have increased 30 per cent. For example, a pack of bacon used to cost the business £5.49 but this has now increased to £8.32.

It left him with the choice of hiking up prices in line with costs, or keep them the same and see his profit dwindle.

He said: “We are worried about whether customers will continue to order from us.

“As the cost of living rises the first thing customers are going to stop doing is ordering food.

“In the last seven or eight weeks alone I have noticed a drastic drop in orders from JustEat and Uber Eats.”

Stuart thinks the government need to do more to protect small businesses like his.

He said: “The government just aren’t doing enough to protect businesses.

“Even if they announce measures to support the businesses I think it will be too late, they should have done something months ago.”

Jane Turner, owner of bar and restaurant Tubbs of Colne, says she is “worried” about what the next few months could bring.

Jane Turner, owner of Tubbs of Colne (Image: Jane Turner)

Jane, who is also vice chair of Colne Business Improvement District, said: “We will survive, because we always do, but I am worried about the next few months.

“We will have to cut back on everything or try and find extra sales from somewhere.”

Jane says she is spending an extra £450 a week on energy bills, meaning she is paying more than £22,000 a year in total.

She said: “We already put our prices up in April because the cost of every single thing, from food to oil, has gone through the roof and doubled.

“Now we are being hit by the energy crisis which is just another hoop to jump through.”

Unlike residential properties, businesses operate without a regulated price cap meaning suppliers can charge them eye-watering bills.

Jane said: “The problem for businesses is that these price hikes aren’t capped. Energy companies can charge whatever they like which is a huge problem.

“I honestly have no idea what businesses can do to offset the rises. It’s completely untenable for people to afford.

“You can’t tell a business to plan for this kind of price increase –  price hikes like these are absolutely unimaginable.

“People are being squeezed at home and they won’t be able to go out and spend money in businesses. The bottom of the economy is just going to fall out.”

Today (September 8) new Prime Minister Liz Truss will set out a plan aimed at saving households and businesses from financial ruin as a result of soaring energy bills.

It's widely expected this will involve freezing energy prices, but Ms Truss has ruled out a windfall tax on energy companies' excess profits - which are expected to sit at £180 billion over the next two years - to fund it.

Jane said: “I am hoping Liz will come around on a white horse and fix the problems that the government has ignored for the last few months.

“Unless something drastic happens many businesses will close and so many will be out of a job.

“People on £40,000 a year won’t be able to afford bills never mind those on a lower income.”

Michelle Naylor, landlady of the Craven Heifer in Briercliffe, has announced changes to her winter opening hours in order to combat the energy bills.

The Craven Heifer (Image: The Craven Heifer)

Michelle also said she is planning ‘blackout nights’ where punters enjoy a pint by candle light.

She said: “From Monday, October 3, we will be closely monitoring our opening to ensure we come through the forthcoming crisis as a viable business.

“This will enable us to reduce our overhead costs during our quiet periods helping us to keep costs under control and keep any price increases to a minimal.

“We have now had confirmation of price increases from all our supplies.

“Not only has the price of beer gone up but Co2 used for the pumps has also increased in price.

“This has left us with no alternative but to increase prices from Monday, September 12.

“To help our customers during this ongoing cost of living crisis and to enable customers to still have some social life we will be offering cans as an alternative.”

MORE: Landlords warn £20 pints needed to cover energy bills

Michelle told a regional newspaper that she is “dreading” the coming months.

She said: "It feels like wartime and rationing, which many of our customers won’t have experienced.

“We’ve decided to host a blackout night where we will encourage our regulars to come along with a blanket and candles. We’ll light our fire, turn off our televisions and mobile phones.”

The Craven Heifer isn’t the only pub to have been hit with the high energy bills in recent months.

READ MORE: New landlord of Darwen pub quoted £26K energy bill

Suzanne Halliwell, the new landlord of the Sunnyhurst Pub in Darwen,  said the small business can expect to be paying between £21,600 and £26,000 annually; Suzanne hopes the community can rally behind the pub and support them as bills rise.

The Park pub in Great Harwood is currently closed while Admiral Taverns look for a new owner.

Former owners, Craig and Darina Currie, say they couldn't afford to keep the pub open as the cost of living crisis rages on.

East Lancashire Chamber of Commerce, which provides business support services, said the government needs to act if they are to save Lancashire’s businesses.

A spokesperson said: “We have been trying to get the message about the energy pressures on business across to the government for months and they don’t seem to be listening.

“For small business there is no energy cap and little support.

“There needs to be some assistance for businesses as there will be job losses.

“It’s massively important that we get support for our businesses right now and it’s going to have to be along the lines of furlough-size scheme to make sure they stay alive and keep employing people.

“We want to encourage businesses to do anything they can to reduce energy usage. This is the time to get on the front foot about your low carbon moves.

Sarah Howard, chair of the British Chamber of Commerce (BCC), said: “We would like to congratulate Liz Truss on running a successful campaign to become the UK’s new Prime Minister.

“She must now take immediate steps to support the economy. The last few months have been difficult for everyone, time is running out and urgent action is needed to deal with the costs’ crisis.

“We believe the country has already entered a recession and that inflation will hit at least 14 per cent in the months ahead.

“Like households, firms have been telling us of unsustainable rises in their energy bills and how difficult it is to find new fixed term contracts to buffer against further price hikes.

“Unless the new Prime Minister addresses these problems head-on then the economy will drift further into dangerous waters and the outlook for both businesses and consumers will be bleak indeed.

“The BCC set out a five-point action plan to support businesses at the end of August and sent it to the Treasury and Liz Truss’s team.  It is now imperative that we see movement on our proposals.

“The plan is not just about ensuring support for businesses. It is also about protecting jobs, securing livelihoods, and creating a vibrant and prosperous society.”

Chamber Low Carbon is a free scheme open to small and medium businesses in Lancashire, where they can find out how to reduce energy consumption. This is available to anybody for free and fully funded by the government.

Find out more by visiting: www.chamberlowcarbon.co.uk