New analysis by the Liberal Democrats reveals that over 2,000 businesses are at risk of closure in the South West following the Chancellor’s Budget. 

The Budget confirmed that business energy support will be slashed by 85% by moving from a cap on unit costs of electricity and gas to a discount covering a small proportion of the price. 

According to the Federation of Small Businesses “one in four small firms anticipate either closing, downsizing, or radically changing their business model” when business support is cut in April.

Liberal Democrat analysis shows that small and medium sized pubs, restaurants and cafes are facing an increase in bills of £231 million nationally - and of around £3,037 in Bath and North East Somerset per business. 

Bath's local economy and businesses are recovering strongly from the pandemic. High Street vacancy rates are currently 10.2% on average in the UK (Springboard, Jan 2023). Real estate data for Bath shows that vacancy rates for retail premises are much lower at between 3 and 4%. Footfall in Bath city centre is also now higher than 2019 levels.

These trends show that Bath remains a vibrant and popular destination for both locals and visitors. 

Wera Hobhouse, Liberal Democrat MP for Bath, commented:

“The Conservative Government is failing businesses across our region. Businesses which have barely managed to survive the pandemic are now being left to their own devices to get through this energy crisis. 

“If the Conservatives actually understood businesses they would extend energy support for at least another six months as Liberal Democrats have called for.”

“Bath’s economy has shown its economic resilience with footfall in the city centre now even higher than before the pandemic. The Chancellor should not be jeopardising this recovery by abandoning businesses to massive spikes in energy bills.”