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The 15th March 2023 brought the release of the new Spring Budget by the freshly appointed chancellor, Jeremey Hunt. This release has brought Hunt’s first budget as chancellor, laying out the government’s plan for tax and spending policy. Plus the OBR (Office for Budget Responsibility) have published their updated economic forecasts for the next five years.  After a tumultuous few years and even some months and weeks, the release of the budget has been heavily anticipated. Particularly as businesses wanted to know how they will continue to be supported and what may impact their spending over the next year. As many of our business energy customers are small businesses, we have provided this short summary of the spring budget, focusing on what was mentioned regarding energy prices and business taxation.    Confirmation of the Energy Bills Discount Scheme  One of the most important parts of the spring budget for energy suppliers and our customers is the confirmation of the Energy Bills Discount Scheme. This has been confirmed as a replacement for the Energy Bills Relief Scheme, which will come into effect on the 1st April. This scheme is specifically in place for non-domestic gas and electricity customers and will offer support for the next 12 months. For more details on this, we have written a useful blog for our customers here. On top of this it has also been confirmed that the Climate Change Agreement Scheme will be extended until March 2025. This provides eligible businesses with business tax relief for the implementation of energy efficiency measures.    Predictions for energy prices by the OBR   Thanks to the latest forecast by the Office For Budget Responsibility which was published alongside the new budget, we have some idea of what may happen to energy prices over the next year. As part of their fiscal forecast, developing on their previous forecast in November, the OBR have stated ‘Wholesale gas prices have more than halved over the past six months and are expected to fall further over the forecast.’    Corporation Tax Increase The Chancellor has stated that the main corporation tax rate will increase for businesses from 19% to 25%, this will take effect from 1st April 2023.  In regards to capital allowances, the Government has also announced that the 100% first-year allowance for qualifying expenditure on electric vehicle charge-point equipment will be extended until 31 March 2025 for corporation tax, and 5 April 2025 for income tax. This measure is intended to continue to encourage the uptake of equipment for charging electric vehicles. Meaning businesses can incorporate this into their sustainability measures and goals with tax relief benefits.

As the colder temperatures set in and talks of snow begin to flutter around offices and homes, winter has certainly arrived in the UK. Unfortunately the usual excitement of Christmas, New Year, and winter markets has been clouded by the current cost of living crisis and the rise in energy costs. As both households and businesses face rising bills, now is a particularly difficult time and one that requires people to take a more cautious approach to spending.  If you are a small business owner, we are sure you will certainly be feeling the pinch. And with the energy crisis set to continue into 2023, budgeting is now more essential than ever. In this latest blog, we will be offering our support to small businesses who are looking to budget for the rising costs of electricity and gas.  Creating a budget for your small business Budgeting is a vital part or running any business, and when you run a small business you’ll know that every penny counts. A budget should incorporate details about all the costs your business will incur over the next period. When creating a budget you need realistic figures, so taking into account what you have spent previously will be most beneficial.  To know how to budget with your rising energy bills in mind, it would be useful to use the past few energy bills you have received. You may also want to contact your energy supplier to discuss your direct debit payments and agree an amount that works for your business. This way you can plan for the next few months. Your budget can then be altered to review ‘what if’ scenarios, such as your energy bills increasing.  Tips for creating a budget: Consider all your costs both fixed and variable Take a look at your previous sales and use this to produce a sales forecast  Factor in any one off costs such as a large payment for a replacement item or maintenance repairs to your premises that you are aware of  Plan regular budget reviews  Put aside an emergency budget for when needed With the right approach to creating a budget for your business it is possible to budget in for the rising energy costs, however there is support available for small businesses and solutions for saving energy to reduce these bills.  How to save on energy costs during winter?  There are several steps you can take, as a small business owner, to reduce your energy consumption and thus save money on your energy bills this winter. We have touched on several of these tips in previous blogs, which you can read here. Alternatively, for additional support, please do not hesitate to get in touch with our customer service team, who can support you during this time.  Support available to SMEs  Currently, there are a number of schemes and grants available via both the government and the energy suppliers for small businesses. These schemes have been designed for those businesses who can not afford to cover the rising costs of their energy bills. regulator , Ofgem, has further information about the various types of support available on their website. Guidance on the current Energy Bill Relief Scheme, provided by the government can be found here, and on our blog.