An Aberdeen cafe owner claims “not enough” is being done by the government to help smaller businesses following the Budget statement.
Dawn Forrest has owned Blether on North Deeside Road in Cults for four years and says her energy bills were only £500 a month when she first started.
At first, her electricity bills gradually increased, but, they suddenly soared to £2,500 per month.
Combined with the rising cost of food, paying staff and rent, the small Cults cafe is just breaking even.
Mrs Forrest had been hoping the government would cut VAT as well as offer more help for smaller businesses during the budget announcement this morning.
However, she has been left disappointed and claims the government is not doing enough to help smaller businesses like hers.
Mrs Forrest said: “I know they’re helping with the energy costs a little, but it’s not enough, not near enough.
“So many businesses are shutting down in Aberdeen and all over Scotland it’s unbelievable.”
The cafe owner is on a fixed tariff with her energy supplier, but she managed to find a cheaper rate that would save her £1,000 a month.
She had hoped to buy her way out of her 15-month contract, but she was left shocked when her supplier told her it would cost £15,500.
Mrs Forrest says she can’t afford the amount the company is asking for and so has no other option than to pay the higher tariff.
The cafe owner believes the government should be doing more to stop energy suppliers from keeping businesses in tariffs they cannot afford, and that if people can find a more manageable rate they should be able to change.
‘You’ve just got to keep going’
During his first Budget as chancellor, Jeremy Hunt announced there will be more support for households and businesses as energy costs remain high.
However, confirmed that corporation tax will increase from 17% to 25% and that VAT would not be cut.
She said: “There’s nothing to help you, it’s all adding on and adding on.
“Lucky for me, because I work in the business myself I’m not actually taking a wage out the business to keep it going and it’s just sort of breaking even now.
“All these little companies, cafes and shops in Aberdeen probably were breaking even before all this happened and it’s just teetered them over the edge. You just see all these shops shutting down and it’s a shame.
“We’re just on a level keel now, but you’ve got to keep going because you’ve got staff and rent to pay, you can’t just walk away. If any other issues crop up or any big payments it’s just going to tip those just surviving over the edge.
“Big companies can take this, but little independent companies just can’t.”
Although she had to put up her prices, Mrs Forrest has not noticed a dip in customers and is grateful customers are still trying to support her business.
However, the cafe owner says she is “struggling to see the light at the end of the tunnel”.
“It makes you sick, because you know you have to pay £1,000 more for the next 15 months than you have to,” she explained. “But there’s nothing you can do about it.
“We’ve just got to keep going until things change, surely they can’t leave it like this forever?”
Conversation