Small business owners say that the hike in energy prices following the war in the Middle East will cost them an average of £2,273.90 a month, according to new research.
A poll carried out by Novuna Business Finance over the past 48 hours finds that smaller companies, which are not protected by the cap on domestic bills, will be hit hard by the fallout from the conflict in Iran and the Gulf.
Respondents said rising energy prices means they will pay an average of £753.56 more each month for transport, travel and logistics, £785.92 more each month to run machinery and equipment essential to business operations, and £734.42 more each month to heat their workplace.
If bills stay high for a prolonged period then small businesses could be saddled with extra costs of more than £27,000 over a year.
The new data reveals that 82% of UK small businesses said they had already felt the impact of rising energy prices. almost 30% said monthly heating bills had already increased by up to £500. while 47% of respondents believed they would pay £1,000 or more extra a month, with 21% citing a figure over £2,000.
When it comes to the energy needed to operate machinery or equipment, 78% of small businesses said they were affected by rising bills. ,Just over 40% of respondents said they would have to pay more than £1,000 extra a month. When it came to travel, transportation and logistics, 21% of small businesses expected energy costs each month to rise by more than £2,000.
These new findings come at a time when the confidence of small business owners was already fragile, with just 27% predicting growth for the first three months of 2026.
More than two in five of respondents said they would have to raise their prices to their customers as a response to the extra costs. In addition, 20% of small business owners said they would re-assess their funding arrangements with lenders, to free up more working capital – and 17% said now was the time to explore renewable or green energy options in an attempt to lower costs.
The research also suggests rising cost pressures could have an impact on jobs. While only 16% of small businesses said they may have to let staff go as a result of rising energy prices, more than twice as many said rising energy costs would encourage them to look at options for automating areas of their business, as a way to reduce overheads.
Jo Morris, head of insight at Novuna Business Finance said: “Last year, many small business owners were worried about the impact of rises to Employer’s National Insurance, but the unexpected impact of soaring energy prices could impact small businesses more profoundly. Unlike consumers, small businesses don’t benefit from a price cap and they have greater and more varied energy requirements. The impact of yet another cost burden for UK small businesses comes at a time when their growth outlook is already fragile.
