Dear Ben Everitt and Iain Stewart,
I am writing this letter to urge you to do something about the rising energy costs and the impact on small businesses in Milton Keynes before it is too late.
Please consider the introduction of a price cap and an immediate reduction in VAT for businesses to help them survive the next 12 months.
As you know, commercial properties are not currently benefitting from a price cap. They are already facing astronomical price increases. This has already led to the permanent closure of some of our local restaurants and shops.
In the last week, The Fenny Kitchen and Olney Butchers announced their closure and attributed it to the simply unaffordable increase in energy costs.
These are two beloved small businesses that have been an asset to the local community for many years that have now been lost because of the failure of the government to act.
They will not be the first to close their doors, nor will they be the last.
A reduction in VAT will enable restaurants to make a small profit and ride through the increase in costs. The government could save a lot of businesses, livelihoods and jobs.
The Carrington Arms lost £10,000 in July despite a £120,000 turnover. If VAT was at 5%, they would have made a small profit, even though their energy bills will be going from £23,000 to £75,000 per year.
Other small businesses are reporting similar increases. They face a vicious cycle where customers will be spending less on non-essential activities and products due to their own increasing costs, so the opportunity for restaurants to recoup the revenue is plummeting.
With the impact of the energy crisis affecting households and people having to find thousands of extra pounds to pay energy bills, we will see a massive decline in consumer spending, which means a reduced income for small businesses. The combination of no cap and no income will put many in a dire situation.
By sitting by and doing nothing to help small businesses, you are damaging an already delicate economy. Small businesses contribute 52% of annual turnover in the UK private sector. 52%. SMEs also account for three-fifths of employment. They are integral to both employment and a healthy economy.
Your party is standing by watching this happen. We will have no small businesses left not just in the City of Milton Keynes, but across the UK. With The Federation of Small Businesses (FSB) reporting that 53% of businesses are expected to stagnate, shrink or fold in the next 12 months, the future is not looking good.
Ben, Iain, you both claim to be supportive of local businesses and you are currently running a competition for the Best Café in Milton Keynes.
The reality is the winner of that competition might not survive the next six months if your government does not act.
