Rising fuel and energy prices are putting seven out of 10 small businesses in Yorkshire and the Humber at risk of collapse, a report from Simply Business has shown.

The SME Insights Report, which surveyed over 1,000 small businesses, found that 67% see increasing fuel and energy prices as one of the biggest threats to their survival.

Alan Thomas, UK CEO at Simply Business, said: “Many small business owners are at breaking point – feeling the crippling pressure of rising costs, energy and fuel prices, alongside their ongoing recovery from the economic impact of the pandemic.

“Our SME Insights Report is a clear indication that small business owners want and need government support, with three in five calling for a review or reduction of the energy price cap.”

Seven in 10 businesses accross Yorkshire and the Humber are at risk of closing, Simply Business's report has shown

On a national level, the report shows that 70% of small business owners believe the rising cost of living to be their biggest challenge this year.

Almost half of those surveyed said they are set to raise their prices in an attempt to offset increased expenditure.

46% intend to raise prices by 6-10%, while almost one in 10 owners said increases could be as high as 20%.

Analysing the report, Jonathan Portes, professor of economics and public policy at King's College London, said: “Apart from raising prices, the main response to these adverse pressures from businesses is likely to be to simply hunker down, reduce costs where possible, and get on with it: that is, to pause expansion plans and, for those with employees, to cut back on hiring, hoping that conditions will improve over the coming year."

Two thirds of small business owners in Yorkshire & the Humberside believe that the economy is set to worsen over the next six months, with a quarter of those who took part in the survey saying that a lack of funds or access to credit could force them to close their doors later this year.

An earlier report from Simply Business notes that over the last two years, 87% of small business owners lost an average of £21,981 each.

One in six of businesses surveyed in the same report believe they will never recover financially from the pandemic.

Report finds seven out of 10 small businesses in Yorkshire & Humber at risk of closure due to rising bills