The Brief: The Financial Times reported that high street hair and beauty salons are at risk of shutting down after the National Hair and Beauty Federation’s survey found out that 77% of these small enterprises are paying more for energy costs compared in the previous six months. They are more exposed to energy price hikes given their dependence of electrical gadgets as well as lighting and heating equipment.
Why It Matters: During his Autumn Statement, Jeremy Hunt announced that the energy price guarantee set by Liz Truss will remain, but only until April. This will significantly impact households and businesses heading into winter.
Finanze Business Foresights: For SMEs, riding out the recession is a challenge, especially after Hunt’s tax announcement last week. Truss took heed of the business community’s calls for extension, but Hunt had to ensure that he meets the government’s target of filling the fiscal gap as they prepare for the next election. The most vulnerable groups affected will be those out of contract who are exposed to rising costs since suppliers can raise their rates at will. Unless they find a way to get into a fixed contract, they will be at the mercy of a highly volatile market as Russia won’t agree to reopening the Nord Stream anytime soon, and refined oil products will remain in dearth supply once China reduces its oil product exports during winter.
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