Cost of living: Businesses fear quiet Easter bank holiday

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Media caption,

At the end of one day this week the “hefty” electricity bill had reached £40

Businesses desperate to survive the year ahead fear the Easter bank holiday weekend could make or break them.

The warning comes from the Federation of Small Businesses in Wales, which said the outlook was "tough" for some.

Ice cream parlour boss Lauren Evans said the cost of living crisis meant she was already worried about next winter.

The Welsh government said it was focused on "spreading tourism benefits throughout Wales".

Bills have been a "huge" concern for ice cream shop Fablas in Porthcawl, Bridgend county, especially since energy relief ended.

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Lauren Evans is worried about the future of her business

Ms Evans said: "We're battling with electric bills. They're astronomical. We have to keep our freezers on 24/7.

"We're going into our busiest time and we're going to be manic. From September to April the following year, how are we going to cope through that winter spell?"

The 27-year-old said the business was facing tough decisions.

It has parlours in Cowbridge and Penarth, in Vale of Glamorgan; Porthcawl, in Bridgend county; and in Caerphilly.

Ms Evans said: "We'd have to really weigh it up, what we're going to do come September, if the government don't step in and help with capping the costs for commercial premises."

Anglesey Sea Zoo director, Frankie Hobro, said it costs her business between £20,000 and £25,000 a month "just to continue functioning".

"It's been a really long, tough winter," she said.

"Our costs have gone up enormously. Everything from utilities to staffing. Food costs for the animals have doubled."

Despite spending £70,000 on solar panels to cut energy bills, Ms Hobro said the zoo was still struggling.

Ben Cottam, the boss of the Federation of Small Businesses (FSB) in Wales, said it was "critical" we use the bank holiday weekend to support "treasured local businesses".

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Frankie Hobro says the current situation is "soul destroying"

But Ms Hobro said she was worried there were fewer tourists about and feared those that were had less to spend.

"We've had a huge drop in footfall, post-pandemic," she said.

"People have less money. Everyone is facing more pressures financially."

The zoo director was concerned tighter profit margins meant businesses like hers would not be able to invest and improve.

"As a business owner it's soul-destroying," she said.

"I don't see how there will be an end to this."

Wales' Deputy Sports Minister Dawn Bowden said the Welsh government wanted to spread tourism benefits across the country.

She said: "Our Visit Wales marketing campaigns will continue to keep Wales front of mind, especially with the industry reporting a trend in much later bookings aligned to the economic climate."

Chancellor Jeremy Hunt said supporting businesses and families was a priority for the UK government, but that continuing financial support through the energy bill relief scheme was unsustainable.