Thursday 18 August 2022 02:28 PM Cost of living crisis: Firms across Britain are forced to shut because of ... trends now
Dozens of British businesses are being forced to close their doors as the crippling cost of living crisis continues to take hold over the country.
Small businesses in particular have been unable to cope with the increased cost of energy and food bills - and are now calling for immediate government intervention.
It comes as new Office for National Statistics data released yesterday revealed that the UK inflation rate is the highest it's been since 1982, at 10.1 per cent.
Martin McTague, the national chair of the Federation of Small Businesses, has warned that the 'toxic cocktail' of rising taxes, energy costs, inflation and shrinking economic growth means 'action is needed right now'.
'The cost of living crisis can't be solved without addressing the cost of doing business crisis,' he said.
Yorkshire restaurant boss, Marco Di Rienzo has been forced to close his business after five years because of a £2,000 monthly bill.
Yorkshire restaurant boss, Marco Di Rienzo (pictured) has been forced to close his business after five years because of a £2,000 monthly bill
The upmarket Italian restaurant, Santoni, on Airedale Road, Keighley (pictured) remains popular, but with the worsening cost of living crisis means the owner has no choice
The upmarket Italian restaurant, Santoni, on Airedale Road, Keighley remains popular, but with the worsening cost of living crisis and rising prices in general, Mr Di Rienzo has been left with no choice.
'The main factor is what's coming ahead,' he told Yorkshire Live.
'I think there is a tough year or two ahead....with higher food prices, gas and electricity.'
With his business facing rising gas and electric bills of up to 40%, the monthly bill would be rising from roughly £1,200 a month in the summer to £1,800, he said.
Winter monthly bills would be closer to £2,000.
Food bills for the restaurant are also reaching crippling levels, says Mr Di Rienzo. Since March, a 20-litre drum of vegetable oil had risen from about £20 to £42.
Imported Italian mozzarella cheese had also gone up from £6 per kilo to more than £7 and San Marzano tomatoes had gone up from around £8.70 to £11.20 per kilo.
A slew of supermarket items have also far outpaced the inflation rate, with the cost of low fat milk rising by 34 per cent on average over the past 12 months, according to the latest data from the Office of National Statistics (ONS)
'As a small business, there is no way I can find that extra £12k to cover this quarter', Mr Tang said. Pictured, rising costs reported by the ONS
A Chinese takeaway in Aberdeen may also be forced to close after it was hit with a £10,000 gas bill - 10 times more than what they would usually owe.
Martin Tang, who owns Royal Crown on Crombie Road, Aberdeen said he was 'shocked to [his] core' when he received the bill.
The takeaway, which has been serving locals since the 1980s, normally has a quarterly bill for roughly £1,000.
However, after the latest bill, Mr Tang said the price hike could leave staff jobless as the business is losing money whenever they cook, he claims.
Mr Tang, who has been involved in the business as a manager and then owner for 18 years told BBC Scotland he will not be able to pay what his energy supplier is charging.
Martin Tang (pictured), who owns Royal Crown on Crombie Road, Aberdeen said he was 'shocked to [his] core' when he received the bill
He said: 'It's always around a thousand or slightly above a thousand.
'But this one I recently received on Saturday was like a bombshell, on top of the new electric bill I received last week which was £4,000.
'As a small business, there is no way I can find that extra £12k to cover this quarter.
'I already have high blood pressure, this actually shocked me to my core.'
The takeaway only opens five nights a week and Mr Tang said he will open this week just to use up fresh stock and then say goodbye to his customers.
He said: 'Every time I turn on a burner to cook something, I'm losing money.
'This is enough to kill off my business.
'There's nothing I can do.
'Imagine me telling a customer their chicken curry is now going to be £28.
'There's just no way around it.'
Royal Crown employs three full-time and two part-time members of staff who face unemployment if the takeaway is forced to close.
The Bank of England has predicted that inflation will reach 13% in the coming months
The headline CPI rate reached 10.1 per cent in July - well above analysts' predictions of 9.8 per cent. It was up from 9.4 per cent the previous month
New stats reveal the headline CPI rate reached 10.1 per cent in July - well above analysts' predictions of 9.8 per cent. It was up from 9.4 per cent the previous month, driven largely by fuel and food prices.
It is the highest inflation has been since February 1982, when the measure was estimated to have been 10.4 per cent, and comes amid a cost-of-living crisis that is seeing prices spiral on everything from package holidays to fish and chips and even toothbrushes.
A slew of supermarket items have also far outpaced the inflation rate, with the cost of low fat milk rising by 34 per cent on average over the past 12 months, according to the latest data from the Office of National Statistics (ONS).
Aberdeen's beachfront swimming pool is another service to temporarily close due to rising energy costs.
Sport Aberdeen, the arms-length organisation which runs the Beach Leisure Centre for the council, said the pool would shut from 21 August.
The decision - due to the rising costs of heating the pool - will be reviewed in the spring when it is hoped it could re-open.
Aberdeen's beachfront swimming pool is another service to temporarily close due to rising energy costs
In a message to members, Sport Aberdeen blamed 'unprecedented' rises in costs.
Meanwhile, in Stockton, Durham, a pub is being turned into an Islamic school and community hub.
Regulars at The Queen Victoria were reportedly 'gutted' to hear it was closing down after decades serving the community.
Landlords Paul and Judith Alderson served their final