Businesses say they're 'on the brink' because of rocketing cost of living

Report by ITV Calendar Journalist Astrid Quinn.

Businesses say they are 'on the brink' with the rising costs of energy bills, leaving many struggling to keep their doors open.

Price increases are putting the future of many small businesses in danger. On average, the cost of running rose by more than 80% last year, and it sets to increase as energy prices rocketing and the increase to minimum wage.

Lucy Wilkinson, who has been running a tanning salon in Lincolnshire for seven years, has had to reflect the rising costs in her prices, which has made it harder to keep customers.

"Our biggest cost is electric. We pay about £1,500 on average per month, that's going to go up to £9,000 extra per year just on electricity."

Likewise, Mama's Italian Bistro, a family run restaurant, has seen a drop in customers. Its manager, Roger, said it caused him "unbelievable" stress.

"Power has gone up, we're also being hit quite heavily with increase in food, incurring delivery charges. The stress it causes is unbelievable, it's just really hard."

He added, "All we can do is knuckle down and carry on."

Small businesses face a 54% rise in energy bills, and 40% reported their profits were down because of inflation.

In a statement, the government said it "can't control the global factors" pushing up the cost of everyday essentials, but it will act wherever it can to mitigate the rising costs of everyday essentials.

They added that it has "backed businesses throughout the past few years with an unprecedented package of support, including VAT cuts, business rates holidays and loans."