Five leading UK business groups have called for urgent government intervention to address soaring energy costs, warning that inaction could hinder economic recovery and fuel inflation. In a joint letter to Chancellor Rishi Sunak, the heads of the CBI, British Chambers of Commerce, Institute of Directors, Make UK, and Federation of Small Businesses described the rising energy bills as 'rocketing' and detrimental to both households and businesses.
The groups highlighted that a 50% increase in energy bills, expected when the price cap is lifted in April, would add £600 annually to the average household bill, pushing an additional 2 million people into fuel poverty. They noted that such a rise would add 1-2 percentage points to inflation, which is already at a 30-year high of 5.4%.
Businesses, particularly small and medium-sized enterprises, are also struggling with steep energy cost increases, along with rising wages, shipping, and tax costs. The groups warned that many companies may have to pass these costs onto customers, further stoking inflationary pressures.
The letter urged the government to mitigate rising domestic bills and support the most vulnerable, while also addressing medium-term energy system resilience. They called for regulatory measures to build supplier resilience, drive competitiveness, and incentivise green investments, including energy efficiency programmes.
A government spokesperson acknowledged the pressures, citing £12bn in support over two years, including the energy price cap, and pledged to continue listening to consumers and businesses on managing energy costs.
