The boss of a Bristol-founded vintage clothes business that has seen a "drastic drop" in sales over the past month says the cost of living crisis is "destroying" her company.
Kate Ashwell, co-founder of Ashwell & Co, has urged the Government to do more to help firms as rising inflation puts pressure on household spending.
Inflation rose to 9% in the year to April - up from a high of 7% in March - according to the Office for National Statistics (ONS). It was the fastest measured rate since records began in 1989.
Much of the jump is down to the high cost of energy on international markets, especially gas, although oil prices have also shot up. This has also pushed up the price of many other items, which are made or transported using gas and oil-based products. The war in Ukraine has also hit global food supplies.
"The Government needs to ensure the economy starts moving again otherwise many small businesses, like ours, won’t make it through," warned Ms Ashwell.
She has been running her store on Alma Vale Road in Clifton since 2014 and last year opened a new site in Newport, in Wales.
"Having fought our way through the pandemic, it’s incredibly deflating," said Ms Ashwell. "We are absolutely exhausted and our emotional and financial resources are low. The financial crisis we’re in is yet another thing small businesses are having to face, but this time there is no help from the Government. The current situation is potentially far more damaging longer term for our business."
Chancellor Rishi Sunak has said countries around the world are dealing with rising inflation, which is being driven by the energy price cap increase in April.
“We cannot protect people completely from these global challenges but are providing significant support where we can, and stand ready to take further action," he said.
The Chancellor has pledged around £22bn in support, including £9bn to deal with household energy bills and measures to mitigate the impact of April’s rise in National Insurance Contributions (NICs). But he is facing pressure to do more immediately to help struggling households.
The British Chamber of Commerce (BCC) said the crisis was damaging companies' ability to invest and operate at full capacity - and warned the UK could fall into recession by the third quarter of the year.
Suren Thiru, head of economics at the BCC, said: “Although surging global energy and commodity prices aren’t typically something in the UK government’s direct control, more needs to be done to help consumers and businesses through this difficult period. This should include reversing the rise in National Insurance Contributions and cutting VAT on business energy bills to 5%.”
Like this story? Why not sign up to get the latest South West business news straight to your inbox.
