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The government will provide £5.5bn in the next financial year following the £18bn allocated to assisting businesses in the winter.
Firms that pay less than £107 for gas and £302 for electricity will be excluded.
The Federation of Independent Retailers’ (The Fed) national president Jason Birks said: “This is hugely disappointing for many independent retailers who are struggling to survive. With rising energy bills, falling margins, and rising payroll costs, small businesses will continue to struggle or, indeed, cease to exist unless additional financial support is available.”
The Fed said it will continue to work with the government to highlight the challenges independent retailers are facing amidst this cost-of-doing-business crisis.
Also responding to news, Jack Arthur, energy expert at Uswitch for Business, said: “While the Chancellor’s 12 month Energy Bill Discount Scheme should finally provide clarity for the business community, the impact of a considerably reduced support package from April could be concerning, particularly for smaller businesses.
“Extended support is welcome news, but the new package is a significant reduction in support from the previous £18.4bn.
“The new package will offer a discount up to a certain level when wholesale gas prices exceed a price threshold. For electricity, this threshold is £302 per MWh and for gas, £107 per MWh. The largest discounts will be offered to those in energy-intensive sectors such as steel, glass and ceramics.
“The UK government has been clear that such levels of support were time-limited to six months and intended as a bridge to allow businesses to adapt.
“Businesses who are struggling with their energy bills should be aware of their contract end date and to review the terms of any new deal before signing. If they have concerns that they aren’t getting the right level of discount or support, they should be speaking with their supplier.
“Firms should also be looking at how they can make their operations more energy efficient to mitigate against price rises as much as possible.”
Retail NI pulled no punches in its response. Chief executive Glyn Roberts said: “The new package of business support is woefully inadequate. By moving to a subsidy on energy bills and failing to target specific sectors or those worst affected, the government has spread support over every type of business, the result being a level of subsidy that is ultimately pointless.
“Make no mistake, local shops will go out of business if the government does not rethink its approach before April. Retailers who struck contracts at the peak of the wholesale energy price will still see their bills quadruple even with this meagre support, blowing their commercial model out of the water”
“In Northern Ireland the problem is much more acute. Our members are not getting the same level of Business Rates Relief the rest of the UK is getting.
“English independent retailers receive 75% discount on their rates bill, while their Northern Ireland counterparts are getting nothing”
“It is not too late for the Chancellor to reconsider the support he is offering, to find practical ways of targeting it more effectively, provide our members with the same level of Rates relief as England and to save the businesses who he is effectively consigning to closure with his decision.”
