// One in five retailers fear it may not survive the next 12 months once the government’s energy subsidies finish at the end of March, new data reveals
// The government is scaling back its support for businesses’ energy bills, replacing the current cap scheme with a wholesale energy price discount
More than 50 retailers fear it may not survive the next 12 months once the government’s energy subsidies finish at the end of March.
Out of the 250 retailers surveyed by FRP Advisory, 22% were not confident it would be solvent by the end of 2023.
Two-thirds of the group cited rising energy costs as its biggest cost pressure in the months ahead.
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The government is scaling back its support for businesses’ energy bills as Jeremy Hunt concluded it as “unsustainably expensive”, suggesting costs could hit £18.4bn in six months.
From 1 April, companies move to a new scheme which provides them a discount on wholesale energy prices instead of a cap.
FRP advisory partner Phil Reynolds said: “Inflation is pushing up operating costs and dampening consumer confidence, with the looming recession likely to ensure that conditions remain challenging for some time to come.”
Iceland is one of a number of retailers that have made several changes in a bid to tackle rising energy costs.
As a result, managing director Richard Walker told This is Money last month he expects the retailer’s energy bills to reduce this year as it looks to be “as energy efficient as possible”.
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