Britain’s high street businesses could be just weeks away from having to turn off the lights for good due to spiralling costs, a leading industry expert has warned.

With the increasing cost of raw materials, ingredients and imports, the removal of lower VAT rates from April and energy costs more than doubling year on year, the nation’s corner shops, takeaways, hairdressers, pubs and gyms are on the brink.

The Federation of Small Businesses has warned that a quarter of a million small businesses are close to folding, while the Confederation of British Industry has warned that a record number of businesses plan to raise prices in the next three months in a bid to survive.

Energy retailer Love Energy Savings has seen first hand how punishing gas and electricity prices have hurt the nation’s high streets as they have tracked increases of 124 per cent in bills since this time last year.

This means small traders, typically operating on tight margins, will have to find an extra £10,000, annually on average simply to pay their energy bills.

Data from Love Energy Savings* shows that for electricity alone, the price rises are almost impossible to deal with.

Small and medium sized businesses can expect to see their energy bills rise by an eye watering 124 per cent annually.

The average annual energy bill for a takeaway in the UK is predicted to rise from  £6,763 in 2021 to an estimated £14,794 in 2022. While the typical shop could see their bills rise from £4,120 in 2021 to £9,266 this year.

Dayna Currie, Strategy Director at Love Energy Savings, says: “The full impact of this will only be seen as we go through the year as business customers move on to new rates when their contracts come to an end. This is generally quite evenly dispersed across the year.

“The biggest price rises from energy providers have really only happened in the last five to six months too, so for some small business owners, unfortunately, the pain is yet to come.

“That is when hundreds of thousands of business owners will need to do their calculations about what kind of price rise they can pass on to their customers in order to keep trading.

“So as soon as any business enters its renewal window – with up to 12 months left on its energy contract – speaking to an expert about the options on the table is the first thing to do.”

To speak to a business energy expert, visit Love Energy Savings at www.loveeergysavings.com