Sherburn in Elmet: Small businesses' fears over rising energy costs

Pub landlady Maggie Holmes says businesses and customers will "suffer" due to soaring energy bills

Some small business owners in a North Yorkshire village have said they have no choice but to raise their prices due to the upsurge in energy bills.

Millions of people will be paying more for their gas despite energy regulator Ofgem's latest 54% price cap increase.

The gas price rise has been mirrored by a hike in the cost of living, with inflation soon expected to reach 7%.

One pub landlady in Sherburn in Elmet said both businesses and customers would "suffer" as a result.

• More stories from Yorkshire

Maggie Holmes, who runs The Oddfellows Arms in the village near Leeds, said she now feared for the future of her business.

"At the moment, we're paying £1,800 roughly for monthly utilities and that is now set to be £3,600. You're talking nearly £40,000 over a year," she said.

"The prices for beer - throughout the industry - will have to go up by at least 10%, which is something that has to be passed on to customers, unfortunately, because it's a lot of money to find."

Ms Holmes said the price of the pint of a premium lager would be "going up to nearly £5", which she said was "a lot of money for a pint".

She said she feared the hospitality industry would suffer as a result of a drop in people's disposable income.

The business was already feeling an immense strain from losing £30,000 during the Covid pandemic, she added.

Wayne Jackson says his family-owned butchers is facing "astronomical" overheads

Wayne Jackson, who runs a family butchers which dates back to 1873 and is just down the road from The Oddfellows Arms in Sherburn in Elmet, said his energy bill was set to double in April.

He said that would just add to the business's "astronomical" overheads.

Mr Jackson also echoed Ms Holmes' worries that the spike in costs would just be passed on to customers.

Meanwhile, Anthony Chapman, a director of a factory making workwear and PPE, said he was "shocked" to find his gas and electricity bill had soared by 247%.

"It's ridiculous. Last year it was £2,300, this year it's £8,100. That increase is just not acceptable," Mr Chapman said.

"Until we find a solution to this, we can't progress. Quite frankly, it's not on. Something needs doing."

Anthony Chapman has seen his energy bills shoot up by 247% in the course of a year

On Wednesday, Chancellor Rishi Sunak announced support measures worth £350 per household through a council tax rebate and money off energy bills.

However, critics said more than half the money was effectively a loan, which would need to be paid back from 2023.

It remains unclear if extra help will be offered to businesses.

In a statement, the Department for Business, Energy & Industrial Strategy said it was "in regular contact with Ofgem, business groups and energy suppliers" to see how businesses could best be supported.

A spokesperson said: "We have backed businesses throughout the pandemic with an unprecedented package of support, including VAT cuts, business rates holidays and government-backed loans worth around £400bn.

"We will continue to stand firmly behind them," they added.