Small firms demand energy action

THE Federation of Small Businesses has called on the Scottish Government to “get moving” on its plan to set up a one‑stop shop for energy and waste advice after a majority of firms complained that high energy costs were putting pressure on their performance.

The FSB also called for additional safeguards for small businesses against “sharp practice” by the energy companies.

Greater scrutiny of the “big six” energy companies’ behaviour toward small firms was needed, the group said, as it also called for a clearer pricing structure for businesses to compare suppliers, and the removal of barriers to new competitors it claimed allows the big six companies to control the market.

In a survey of its members released today, the small business lobbying group found that four out of five Scottish small businesses have seen the cost of overheads increase over the last year, with a majority of respondents citing rising utility costs.

Rory Mackail, the Federation of Small Businesses’ (FSB) Scottish policy vice-convenor, said: “We know the pressure that the rising cost of energy is putting on households across the country. We’re also warning today that Scottish small businesses are also feeling the strain.

“Sharp practice by energy firms means that busy small business owners’ energy contracts are often rolled, locking them in for a further term at inflated prices. Small businesses can also be back-billed up to six years under current regulation. This means that there could be a number of small businesses in for a big shock when their next energy bill arrives.”

Mackail said the FSB had consistently argued that additional safeguards needed to be introduced for small firms by the UK government and regulator.

“In addition, Scottish small businesses need to be educated and supported through the transition to a low‑ carbon economy. We were pleased when the Scottish Government announced it was to rationalise and de-duplicate the sources of small business energy and waste advice. We need to see this proposal progressed as a matter of urgency,” he added.

Meanwhile, the Institute for Family Business (IFB) has today called for the removal of discrimination in the tax system that penalises family-owned firms

The body released a report that shows family firms account for 62 per cent of private businesses in Scotland, or 178,573 firms.

Across the whole of the UK, the family business sector generates revenues of £1.1 trillion a year and provides two out of every five private-sector job.

The IFB argues that the current tax system penalises entrepreneurial families by preventing owners obtaining taxation relief when investing in family business start-ups.

Grant Gordon, the director general of the IFB, said: “Times are tough, and we’re not asking for special treatment, just a level playing field that means family firms can go on running successful businesses which provide jobs to millions of people in the UK.”