Heating is expected to add a further £734.42 each month (Image: Getty)
Small businesses across the UK say that the estimated hike in energy prices following the war in the Middle East will cost them an average of £2,273.90 a month, coming to a whopping £27,286 over a 12-month period. A national poll conducted by Novuna Business Finance over the past 48 hours found that small businesses are likely to bear the brunt of rising energy costs. Unlike households, these businesses are not shielded by an energy price cap and have more energy requirements, according to Novuna.
The poll asked UK small businesses about the impact of rising energy costs on their bottom line. They said rising energy prices mean they will pay an average of £753.56 more each month for transport, travel and logistics and an average of £734.42 more each month to heat their office/workplace.
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82% of UK small businesses have already felt the effects of rising energy prices (Image: Getty)
Small businesses also said that rising energy prices would cost them an average of £785.92 more per month to run machinery and equipment essential to their operations.
These new findings come at a time when Novuna Business Finance’s tracking research revealed the growth outlook of UK small business owners was already fragile, with just 27% predicting growth for the first three months of 2026.
In addition, more than three in four small business owners said business worries keep them awake at night with concerns over economic volatility and geo-political uncertainty reaching a record high (52%).
According to new data, since the Iran war, 82% of UK small businesses have already felt the impact of rising energy prices. 29% of small businesses said monthly heating bills had gone up 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 energy prices, with 41% of respondents saying they would have to pay more than £1,000 extra a month to cover energy bills.
When it came to travel, transportation and logistics costs, 21% of small businesses expected energy costs each month to rise by more than £2,000.
UK small businesses are already taking steps to deal with these unexpected costs. Over two in five said they are likely to raise their prices; 20% said they would reassess 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 to lower costs.
The research also found that cost pressures could impact jobs. While 16% of businesses said they may need to reduce staff numbers, 34% are looking to automation to cut long-term costs.
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.
“In the face of these new market pressures, it is good to see small businesses being prepared to take remedial steps. For many, reviewing green energy options is an avenue to explore – and we know from our research that sustainability remains an important priority for many smaller UK enterprises.
“One in five business owners also say they will review their funding arrangements and, for many, asset finance could prove to be an attractive option to help them streamline their funding, whilst freeing up working capital.”
The growth outlook research was conducted by YouGov in January among a nationally representative sample of 1,000 small business owners.
The energy price research was conducted by UK Omnibus Group on March 28 and March 29, among a sample of 731 small businesses. The research was conducted online. The average figures quoted for additional monthly costs are national averages that include those not affected by price rises.