Businesses across Suffolk say they have seen utility bills rise by as much as 600% - with many voicing concerns about No.10's decision to scale back energy support.

On Monday, the government announced firms will get a discount on wholesale prices rather than costs being capped.

The new scheme will last until March 2024 and businesses will only benefit when energy bills are too high.

"It makes no logical sense," said Dave Courteen, managing director of Mosaic Group, which owns Riverhills Health Club and Spa in Bramford.

East Anglian Daily Times: Dave Courteen, managing director of Mosaic Group, which owns Riverhills Health Club and Spa in BramfordDave Courteen, managing director of Mosaic Group, which owns Riverhills Health Club and Spa in Bramford (Image: Mosaic Group)

"We have taken a massive hit with regards to utility bills and have seen a 300% increase compared to pre-pandemic.

"It seems the government has lost touch with what the goal needs to be and is making it much harder for firms like us - which are important for people's wellbeing - to survive."

Kie Humphreys, owner of the Ipswich-based Coffee Cat, said his situation has left him feeling "like I'm working for the electricity company rather than myself."

"We have seen our bills go up by 600% when compared with what we were paying during the pandemic," he added.

"It's making me question whether we can carry on as we are. 

East Anglian Daily Times: Kie Humphreys, owner of the Ipswich-based Coffee CatKie Humphreys, owner of the Ipswich-based Coffee Cat (Image: Newsquest)

"Hopefully we can get more energy security soon. 

"That way we can figure out where we really are."

Last week, the Suffolk Chamber of Commerce said it would be writing to the county's MPs to ask them to support "a largely unchanged" scheme for 12 months.

Following the latest announcement, Paul Simon from the Chamber said: "The new scheme is clearly less generous than its predecessor.

"We are concerned about the sustainability of the scheme given that it has a finite budget of £5.5bn.

"This seems to be predicated on a belief that energy prices will substantially decline between now and March 2024.

East Anglian Daily Times: Paul Simon of the Suffolk Chamber of CommercePaul Simon of the Suffolk Chamber of Commerce (Image: Newsquest)

"If this is not the case, there is a chance that the scheme could be cut short prior to that date, leaving businesses fully exposed to wholesale prices and supply challenges."

Since January 1, three Ipswich restaurants - La Cueva, K Bar and Grill and Venezuelan Traditional Food - have closed as a result of a drop in footfall and soaring energy bills. 

"This could be the death of a lot of businesses," said Steve Magnall of Two Magpies Bakery.

"Our electricity bill cost an additional £250,000 on last year, going up by around 127%.

East Anglian Daily Times: Steve Magnall, co-owner of Two Magpies BakerySteve Magnall, co-owner of Two Magpies Bakery (Image: Brittany Woodman)

"It's a massive strain on our business.

"We need a long-term solution to this problem."

Mark Cordell, chief executive of Our Bury St Edmunds BID, said the government's new scheme was "not adequate". 

"It's very disappointing that support is going to reduce," he added.

"It's a real kick in the teeth for the hospitality sector.

East Anglian Daily Times: Mark Cordell, chief executive of Bury BIDMark Cordell, chief executive of Bury BID (Image: Sarah Lucy Brown)

"The next 10 weeks is going to be a very difficult period for them and I just hope it doesn't lead to permanent closures."

Some of the worst affected hospitality businesses in Suffolk have been traditional rural pubs, with a number of them announcing closures in recent months.

Steve Gardner is the owner of the 600-year-old Gardners pub in Tostock.

"Our bills recently trebled over three months," he said.

"They're now steadily going up by about 50% every month.

"Combine that with the public's drop in income, it's unsustainable and that's why pubs are closing at an alarming rate.

East Anglian Daily Times: Steve Gardner, owner of The Gardners in TostockSteve Gardner, owner of The Gardners in Tostock (Image: Newsquest)

"I'm 68 and I'm retiring at the end of this year. But I can see it being the end of the road for rural pubs in my lifetime."

Felixstowe Business Improvement District has called for an "urgent review" of Downing Street's announcement, adding it was "disappointed" with the decision.

"Small businesses will now be forced to bear the full cost of their energy bills, which are already among the highest in Europe," concluded Kate Cain of Felixstowe BID.

"This will inevitably put many of Felixstowe’s traders under significant financial pressure with a direct effect on our local economy as a whole.

"Cutting support for small businesses is a short-sighted decision and we would call on the government to think again."