Cost of Living Business Support

The Energy Bill Relief Scheme (EBRS) and its successor the Energy Bills Discount Scheme (EBDS) provided discounts on gas and electricity unit prices for non-domestic customers (businesses, charities, and public sector organisations) from October 2022 to March 2024. These schemes have now ended. Businesses must negotiate energy contracts directly with suppliers in the open market.

If your business is struggling with energy costs, options include: switching to a fixed-price tariff to provide cost certainty; investing in energy efficiency measures (some of which attract capital allowances or grants); considering on-site renewable generation such as solar panels (the Government's Help to Grow: Green proposals and various local schemes may support this); and joining a purchasing consortium to access better rates through collective procurement.

Energy efficiency grants are available through some local authorities and via the British Business Bank's green finance information service. The Industrial Energy Transformation Fund (IETF) provides grants for energy-intensive industries investing in energy efficiency and low-carbon technologies. Manufacturing businesses with high energy consumption should check whether they qualify for reduced VAT rates on energy or Climate Change Agreement (CCA) exemptions from the Climate Change Levy.

Business rates remain a significant fixed cost for many businesses. The Retail, Hospitality and Leisure (RHL) Relief in England provides up to 75% discount on business rates for eligible properties, subject to a cash cap per business. This relief has been extended into 2024/25 — check with your local council for the current position as it is subject to annual government decisions.

The 2023 business rates revaluation took effect from April 2023, updating rateable values to reflect current rental market conditions. Some businesses saw significant increases in rateable values; others saw reductions. If you believe your rateable value is incorrect, you can challenge it through the Check, Challenge, Appeal process via the Valuation Office Agency (VOA). Acting quickly is important as the window for challenges is time-limited.

Beyond rates, review all fixed overhead costs systematically. Many businesses have not renegotiated leases since the pandemic — commercial property markets in many areas have softened significantly. Suppliers may also offer extended terms or discounts for prompt payment. HMRC's Time to Pay arrangements remain available for businesses struggling with tax obligations, allowing debts to be spread over monthly instalments.

National Living Wage and National Minimum Wage increases have significantly raised labour costs for businesses in hospitality, retail, care, and other low-wage sectors. Government support for wage costs is limited, but several schemes can help. The Apprenticeship Levy funds training costs for apprentices, and non-levy employers get 95–100% of training costs funded by government. This can be a cost-effective route to developing staff at reduced net cost.

The Kickstart Scheme has ended, but some local areas have successor employability programmes that subsidise wages for young people. Check with your local Growth Hub or Jobcentre Plus partnership manager. HMRC's Employment Allowance reduces employer National Insurance contributions by up to £10,500 per year (increased from £5,000 at the 2024 Autumn Budget) for eligible employers with an NIC bill under £100,000 in the previous tax year.

For businesses in financial difficulty due to cost pressures, HMRC offers Time to Pay (TTP) arrangements for tax debts, and the British Business Bank's Recovery Loan Scheme has provided government-backed lending for working capital needs. Contact your bank's business support team or a debt advisor early if cash flow becomes critical.