HUNDREDS of thousands of small businesses face going bust in the next few months due to rising costs, a trade group has warned.

The Federation of Small Businesses has warned that some high street businesses have seen their energy bills increase by up to 245%.

Michael Weedon, chair of the FSB’s retail and high streets policy unit, told GB News: “One thing behind the cost of living crisis is there’s a cost of doing business crisis as well.

“All of these input prices are being driven for example we know by energy, but businesses, small businesses in particular don’t have any of the caps or support that we as consumers have.

“So, for example, we have seen businesses where their energy input costs are going up by 245%.”

He said: “They’ve been trying not to put prices up there or I have to say, based on FSB and ONS figures, the real concern is that several hundred thousand small businesses are vulnerable to going bust in the next few months.”

Speaking to Liam Halligan in an interview during On The Money on GB News, Mr Weedon said the fall in value of Sterling against the dollar will exacerbate the crisis.

“So driving a great deal of it, their input prices in terms of product, is being driven by a number of things, obviously, energy comes into that,” he said.

“But you know, just the relationship between Sterling and the dollar has changed significantly over the last year.

“And many of these products which are coming in are priced worldwide in dollars so there’s this great drive behind it, rising costs.”