LONDON’S BUSINESS NEWSPAPER
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TUESDAY 29 NOVEMBER 2022
ISSUE 3,898
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GET WELL SOON Barclays chief to undergo cancer treatment in US
SHAPPS TOLD STRUGGLING SMALL FIRMS NEED MORE HELP NICHOLAS EARL AND EMILY HAWKINS ONE OF the UK’s leading business groups has called for more support for struggling small firms as they continue to grapple with rising energy bills, despite the launch of the government’s energy bill relief scheme. The Federation of Small Businesses (FSB) called on business secretary Grant Shapps to step in to prevent energy suppliers “finding routes to inflate prices”. The group yesterday said that firms were concerned about how the support package was being applied and many companies were worried about whether they could still stay open by Christmas and if they would need to let their staff go. The group said there were examples of small firms being asked by energy suppliers for disproportionate upfront payments and told that they could be disconnected if they fall into arrears. “The government should intervene to ensure that energy suppliers refrain from finding routes to inflate rates for
contracts,” Tina McKenzie, FSB policy and advocacy chair, warned. “Energy firms should promise not to disconnect struggling small businesses this winter, in line with their commitments to households.” McKenzie said it was “utterly unacceptable” for energy suppliers to ask struggling firms to cough up a large sum of deposit in advance of having any turnover or profit that can fund their energy use, particularly when dealing with record-high inflation and rising interest rates. “This is basically kicking small firms when they’re down,” she said. In response, a spokesperson for the Department for Business, Energy and Industrial Strategy said that only “a small minority” of businesses had reported suppliers for setting prices that “undermine the benefits” of government aid. It added, however, that it was working with energy regulator Ofgem to confirm “licence conditions have not been breached and to ensure businesses are able to see the full effects of support of-
fered by the scheme.” The big six energy firms were contacted for comment. Ovo said it did not have any business customers. The concerns were raised as the government unveiled a £1bn support package for energy efficiency programmes yesterday as well as an £18m public information campaign. The campaign, which aims to cut households energy usage by 15 per cent, includes advice to lower boiler flow temperatures, turn down radiators in empty rooms and draught-proof windows and doors. It comes amid continued blackout fears this winter, with National Grid coming close to rolling out emergency plans for the first time yesterday. On Monday morning National Grid said it was considering triggering its ‘demand flexibility service’ for the first time, where households are paid to cut their energy usage at peak times. However, it later opted against invoking the early-stage blackout measures, after it reportedly managed to secure power to keep the lights on.
JACK BARNETT THE HEAD of Barclays has been diagnosed with Non-Hodgkin Lymphoma, a form of cancer, but doctors have said his “condition is curable,” he announced yesterday. In a statement just after the market open, C.S. Venkatakrishnan, known as Venkat, said the illness “has been detected early” and that his “prognosis is excellent”. He will continue to run the bank while undergoing an at least 12 week
treatment programme in New York. Venkat, 56, was parachuted in to lead Barclays in November last year after former chief Jes Staley left to fight the preliminary findings of a Financial Conduct Authority and Prudential Regulation Authority probe that alleged he had not fully disclosed all details of his relationship with deceased sex offender Jeffrey Epstein. Venkat previously led the lender’s global markets division. Barclays shares were flat yesterday.
Khan: London firms face ‘ticking timebomb’ of increased business rates STEFAN BOSCIA AND JACK BARNETT THOUSANDS of squeezed London businesses are now facing a “ticking time bomb” in the form of coming tax hikes, London Mayor Sadiq Khan has warned. Khan revealed to City A.M. that business rates will increase in 28 of the capital’s 32 boroughs in 2023,
just as the UK is predicted to go into recession. The government intervened this month to stagger planned business rates increases for next year over three years, however many London firms are still facing crippling hikes. Khan is calling for the government to more than double the rateable value threshold at which SMEs start
paying the tax. “We need an urgent package of measures from government to support small businesses and those in the outer London boroughs who are fighting to survive in this tough economic climate,” he said. Figures released by City Hall revealed that some London SMEs are facing 24 per cent rises in their
firm’s rateable value, which are partly based on property values, from April. Some of the capital’s iconic sporting venues will suffer huge hikes, such as the All England Lawn Tennis Club in Wimbledon and Crystal Palace Football Club’s stadium, Selhurst Park. Nick Bowes, chief executive of the
Centre for London think tank, told City A.M.: “Planned hikes in business rates risk tipping London businesses over the edge.” A Treasury spokesperson said its “generous” £13.6bn business rates support package, announced in the Autumn Statement, “means that every region will see a cut to their average bill”.
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