Are high energy prices preventing business growth? 

UK businesses are under strain. High energy costs and inflation pressure have already caused issues for companies, but the high energy prices businesses face have raised fresh concerns.  

For most UK businesses, the challenge of surging operational costs are hurting opportunities for growth, innovation, and workforce development. 

Issues with high energy bills 

Energy bills in the UK have skyrocketed over the past couple of years, impacting businesses of all sizes. Small and medium-sized enterprises (SMEs), which form the backbone of the UK economy, have been particularly hard hit.  

With utility costs eating into profit margins, many companies are finding it increasingly difficult to allocate funds for other critical areas like staff training, recruitment, or technology upgrades. 

For example, manufacturers and hospitality businesses, which rely heavily on energy, face a double whammy: rising costs and reduced consumer spending power. As energy prices remain high, the financial breathing room required to invest in long-term growth has been squeezed. 

Workforce development: A casualty of tight budgets 

One of the most significant areas of concern of rising prices is the impact on workforce development.  

Employee training, recruitment, and retention programs are often the first areas to face cuts during times of financial uncertainty.  Yet, failing to invest in people can lead to long-term consequences, including reduced productivity and difficulty adapting to changing market conditions. 

A recent survey found that nearly 60% of UK businesses are delaying hiring plans due to economic uncertainty. Similarly, investment in reskilling workers to meet the demands of an increasingly digital economy has been deprioritised, creating potential skill gaps that could hinder the UK’s global competitiveness. 

What can businesses do to combat high prices? 

• Sign a fixed rate contract – A fixed energy contract will fix your energy costs for a specific period. This will protect your business from volatile energy prices and allow you to plan your budgets more effectively. 
• Speak with an energy broker – An energy broker like ourselves, can negotiate prices with a number of suppliers to procure the cheapest energy contract for your business. Why not get in touch today to see how much you could save? 
• Find ways to reduce business energy consumption – Another way to protect your business from rising prices is to invest in energy efficiency.  Doing this will reduce your consumption