News Karnataka
Sunday, December 04 2022

London: ‘Rising energy prices bane for UK businesses’

Rising energy prices bane for UK businesses
Photo Credit : IANS

London: One in six businesses in the UK expect their overall performance to drop in 2023 as a result of the spiking energy prices, the Office for National Statistics (ONS) said in a study.

Food and drink service businesses are the most affected, with 45 per cent of them expecting their performance to drop, followed by those active in the accommodation sector, at 30 per cent, Xinhua news agency reported citing the study published on Monday.

The ONS said more than a fifth of the country’s businesses said energy prices were their main concern for November 2022.

Food and drink service businesses are more likely than any other industry to cut their weekly trade by at least two in November 2022 to reduce their energy bills, it added.

They are also by far the most likely to reduce trading hours, even if they are still operating for the same number of days, it said.

About 28 per cent of UK businesses said they expected their prices to increase in November.

The respective figure among the country’s food and drink service businesses was 41 per cent.

Around 76 per cent of food and drink service firms and 59 per cent in accommodation said energy costs were making them consider price increases, compared to 34 per cent across all industries.

The study also reveals the likely impact of energy prices on trading performance. When asked about turnover expectations for November, 21 per cent of all businesses and 70 per cent of accommodation businesses predicted lower turnover.

The broader hospitality industry, which employs around one in 14 workers in the UK, has been particularly affected by rising energy prices, the ONS said.

Manufacturers are also under pressure, with more than half of them saying that their production and/or supply had been affected by the rising energy prices.

Around 37 per cent of manufacturing firms said they expected their prices to rise in November.

More than a third of businesses whose production was affected by energy price rises expected their turnover to drop in the month.

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