Last Updated: October 13, 2023By Categories: General News

Wondering what the autumn statement means for you? Following the chancellor’s long-awaited fiscal announcement, we explore the business support packages put into action.

Across the UK, a cost of living crisis is devastating businesses and households alike. In August alone, almost 2,000 registered companies in England and Wales ceased trading. In October, the annual rate of inflation reached 11.1%. And in January next year, Ofgem’s energy price cap is expected to rise again to £4,279.

As essential goods increase in price, and consumers have less money to spend, businesses are seeing their profits fall at a faster rate than ever before. But with the right cost of living support, closures may yet be avoided.

As a trusted facilities management organisation, we realise the impact that financial stress can have on your business. That’s why we’ve taken the time to break down the government’s autumn statement, and lay out the business support packages that could help you.

Energy Bills

Commercial energy support was a key topic discussed in the autumn statement, as some firms have experienced a 349% rise in electricity since February 2021 alone.

For businesses, the Energy Bill Relief Scheme will remain in place until 31st March 2023. A discount on wholesale gas and electricity prices, the business support package will save £389 per MWh for electricity and £105 per MWh for gas.

However, it will be reviewed in April, at which point targeted commercial energy support will only be available for the most vulnerable organisations.

It was also announced that businesses in the energy sector will face windfall tax increases of 10% from January 2023. Moreover, electricity companies will be required to pay a new top up levy of 45%.

Business Rates

Armed with a bundle of direct aid, the chancellor delivered well-received news on business rates. Mostly targeted at hospitality – a sector at major risk of business failure in early 2023 – the cost of living support included:

  • Frozen multipliers between 2023-24, equal to a tax cut worth £9.3 billion over five years.
  • A ‘Transactional Relief Scheme’, which will cap bill increases caused by changes in rateable values. For the smallest properties, bill increases will be capped at 5%. For medium-sized properties, bill increases will be capped at 15%. And for larger properties, bill increases will be capped at 30%.
  • An increase of business rates relief for retail, hospitality and leisure – from 50% to 75%.

National Living Wage

There was an announcement for workers too. From April 2023, the national living wage will increase to £10.42, giving over two million people a pay rise.

With more money to spend, the government hope to see consumers boost the economy at a local level – helping to prop up businesses in the long run.

What Else Can I Do To Support My Business?

The autumn statement was a welcomed announcement. However, some representatives have argued that further business support packages are needed to avoid financial distress.

Until those packages are announced, here’s some measures you can adopt in your commercial setting to help cut back.

Commercial energy support was covered in the government’s fiscal announcement. However, we can save further money on our bills by completing an energy audit.

In it, assess the efficiency of your devices, identify any draughts in ceilings and under doors and review your lighting usage. With the findings, your business can begin to make the necessary changes to save energy and therefore costs.

Did you know that LEDs use 75% less energy than traditional fittings?

At BASSE, we recently installed twelve solar panelled light posts at a housing estate in Mill Hill, saving our client £500 a month. With our expertise, the switch to efficient lighting can further cut back costs.

Outdated electrical equipment is often expensive to run. But newer, efficient models can often help to make necessary reductions on your bills.

For example, a new break room refrigerator can save at least 10-20% on your energy usage. And a remodel to modern desktop computers can too make similar savings.

To stop the warm air escaping from your business – and your money along with it – BASSE can identify and fix any draughts before the coldest months arrive.

Part of our building and estate services, we’ll review your structure to ensure no other surprises emerge that could cost your business excess money down the line.

At BASSE, we understand that the cost of living crisis is impacting your business. But with our expert management, maintenance and repair services, we can help to keep your bills down. Be it a lighting replacement or draught repair, our skilled team is on hand to discuss your concerns – and make smart decisions for your finances.

To get in touch, email us via contact@basse.co.uk or visit our website. Alternatively, If you need further advice and support, visit the Energy Saving Trust.

At BASSE, our core values drive our every action. We’re unwavering experts in our field, focused on seeking opportunities to expand our knowledge and experience. We’re open, to seek advice and guidance from our professional network of partners when needed, allowing us to cover all aspects of the built environment. Embracing simplicity, we break down complex tasks into understandable terms, fostering transparency. And we tailor our approach to each unique task and client, providing a bespoke service from cradle to grave.