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Kent businesses reveal energy bills to rocket and warn hundreds of firms could close without government help

Incoming Prime Minister Liz Truss has vowed to help households with rocketing energy bills. But there has been little detail on how the government will come to the aid of small businesses, amid fears industry will be "decimated" and thousands of jobs lost.

Here, three successful Kent firms reveal how their annual gas and electric costs are set to soar by tens of thousands of pounds - and warn the impact will be worse than lockdown. Gerry Warren and Rhys Griffiths report...

The guitar maker to the stars: 'I cannot believe the government will allow this to happen'

His business is one of the great success stories of small, traditional British craftsmanship with an international reputation.

But guitar builder Alister Atkin from Canterbury - who has made instruments for music legends like Sir Paul McCartney, Bruce Springsteen, Dolly Parton and Ed Sheeran - has been hit by a shocking financial broadside.

Because he fears his energy bill could rise from £6,000 a year to £50,000 by January.

The 47-year-old artisan, whose workshop is based on Lakesview International Business Park, says it would be a huge sum to find.

Guitar builder Alister Atkin, based in Canterbury
Guitar builder Alister Atkin, based in Canterbury

In 25 years, he has grown the business from a one-band man renting a bench in another guitar workshop to owning and running a double factory unit with a team of 10 craftsmen who together produce 500 instruments a year.

His reputation for his acoustic guitars is so great that he was commissioned by the Buddy Holly Foundation to make special hand-painted guitars for some of the biggest names in the music industry.

But he was faced with a dilemma when his energy company last week offered him a one-year contract for £24,000 a year - four times his current bill.

"I had to give them a decision that day but just wasn't happy to commit under pressure like that and at such short notice," he said.

"I realise that it means we could be facing a bill of £50,000 if predictions are correct when we have to renew in January.

Alister Atkins says his guitar-making business is heavily reliant on electricity
Alister Atkins says his guitar-making business is heavily reliant on electricity

"But I cannot believe the government will allow that to happen because it would mean hundreds, if not thousands of businesses going under with huge loss of jobs."

Alister says his business is heavily reliant on electricity for his machine shop and there is little he can do to cut back.

"Also, we have to have the air conditioning on in the summer - otherwise it would be unbearable," he said.

"Sure, we can turn a few lights off but we have LED bulbs anyway so I don't think that will help much.

"Up to now the focus has been on household bills which is bad enough, but this could decimate industries across the board.

Incoming Prime Minister Liz Truss is under pressure to help businesses, as well as households, with soaring energy costs
Incoming Prime Minister Liz Truss is under pressure to help businesses, as well as households, with soaring energy costs

"I want to look after my team because they have unique skills and are passionate about what we do.

"We are urging the government to act quickly because it could push many businesses over the edge."

The cafe owner: 'We won't survive the winter'

Hospitality businesses are facing a crisis even greater than the shock of lockdown, one worried cafe owner has warned.

Nicola Robinson, who has run the Nutmeg cafe in Hythe for 14 years, says businesses like hers simply will not survive the winter unless the government steps in to help with soaring energy costs.

She currently spends around £650 each month on the energy she needs to keep her High Street business going. But she has been told that come November this bill could leap to an eye-watering £3,000 or more.

Ms Robinson, who part-owns a deli in Tenterden and previously ran a cafe in Ashford, believes the situation facing energy-hungry sectors such as the hospitality industry is more dire than during the darkest days of the pandemic.

Nicola Robinson, owner of the Nutmeg cafe on the High Street in Hythe, says her monthly energy bill is going up from £650 to more than £3,000
Nicola Robinson, owner of the Nutmeg cafe on the High Street in Hythe, says her monthly energy bill is going up from £650 to more than £3,000

Because businesses like hers were closed to stop the spread of Covid, financial support and furlough payments saw them through.

This time, however, the challenge is to keep the doors open while bills soar and customers grapple with a growing cost-of-living crisis.

"My utility bill is currently £650 a month which has steadily gone up over the last few years as it is," she said.

"I've had a renewal quote going up to at least £3,000 a month, which has been a major shock. It's devastating.

"After getting through Covid, we've only just got back on our feet again. It's 'watch this space' really - see whether the government can help us in the next few weeks.

Nicola Robinson says her cafe in Hythe inevitably uses a lot of electricity
Nicola Robinson says her cafe in Hythe inevitably uses a lot of electricity

"As a daytime cafe we've got a huge amount of equipment which uses electricity, so therefore our usage is classed as very high. There's not a huge amount we can do about that.

"We've already switched off a couple of freezers, turning lights off and things like that, but if I want to stay in business as I am now, it's not viable.

"The rate increase, which at the moment isn't capped, is going to affect us massively."

All eyes are now on Liz Truss' new administration to set out its plans for supporting the economy through a period of runaway inflation and rising bills.

"We need some sort of emergency package put in place to help us," Ms Robinson said.

The popular, cosy Nutmeg cafe on the High Street in Hythe - but will it survive the winter?
The popular, cosy Nutmeg cafe on the High Street in Hythe - but will it survive the winter?

"I have no idea, there's lots of different options going around at the moment as to how they could help.

"But it needs to be for hospitality and high-energy users, small businesses, otherwise it's going to be the death of the independent small business."

Robert Johnson, owner of the Kavanagh Cinema in Herne Bay
Robert Johnson, owner of the Kavanagh Cinema in Herne Bay

The independent cinema boss: 'Businesses will simply close'

Meanwhile, the owner of an independent cinema in Kent says he is 'dreading' the new demand from his energy supplier - which he fears could be up to ten times what he is currently paying.

Robert Johnson, who runs the Kavanagh in Herne Bay, is bracing himself for a potential monthly bill approaching £12,000, which he says will be devastating for the business.

He acquired the cinema 12 years ago and has invested heavily in it.

The venue has two screens and a film club where members can attend morning screenings for just £4, which includes a coffee or tea, and is made available for private hire.

The Kavanagh Cinema uses a lot of energy to keep the building warm and power equipment like projectors
The Kavanagh Cinema uses a lot of energy to keep the building warm and power equipment like projectors

But he says revenues have not returned to the numbers enjoyed pre-Covid and lockdown.

Now with overheads about to rocket, he fears for the future of businesses like his.

"We use a lot of energy to keep the place warm, power projectors and operate things like popcorn machines and fridges for our ice cream," he said.

"There's no getting round having these things switched on - but the other day I even got out an old hand-operated carpet sweeper to avoid using the vacuum.

"You can't just keeping putting prices up because people will stop coming and we don't have a bottomless pit of money to subsidise it."

"Businesses will simply close and loads of people will be made redundant..."

Mr Johnson also says the government must step in to help.

"They have to do something otherwise businesses will simply close and loads of people will be made redundant," he added.

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