The owner of a vintage fashion store in Clifton has said the cost of living crisis is "destroying" her company.
Kate Ashwell set up her shop, Ashwell & Co, on Alma Vale Road in 2014 with her husband Will, and opened a new store in Wales last year. She says she has seen a "drastic drop" in sales and bookings over the last month as people cut spending amid rising inflation.
According to Office for National Statistics (ONS) figures released on Wednesday, May 18, inflation rose to nine per cent in the year to April - up from a high of seven per cent in March. A large portion of the rise was due to the price cap on energy bills, which was hiked by 54% for the average household at the start of the month.
Read more: Inflation hits 'worrying' nine per cent as cost of living soars
The jump is also down to the high cost of energy on international markets, especially gas, but oil prices have also shot up. This has pushed up the price of many other items, which are made or transported using gas and oil-based products. The increase in the cost of living has seen households cut spending elsewhere.
"The Government needs to ensure the economy starts moving again otherwise many small businesses, like ours, won’t make it through," warned Ms Ashwell.
"Having fought our way through the pandemic, it’s incredibly deflating," said Ms Ashwell. "We are absolutely exhausted and our emotional and financial resources are low. The financial crisis we’re in is yet another thing small businesses are having to face, but this time there is no help from the Government. The current situation is potentially far more damaging longer term for our business."
Chancellor Rishi Sunak has said countries around the world are dealing with rising inflation, which is being driven by the energy price cap increase in April. “We cannot protect people completely from these global challenges but are providing significant support where we can, and stand ready to take further action," he said.
The Chancellor has pledged around £22bn in support, including £9bn to deal with household energy bills and measures to mitigate the impact of April’s rise in National Insurance Contributions (NICs). But he is facing pressure to do more immediately to help struggling households.
The British Chamber of Commerce (BCC) has said the crisis is damaging companies' ability to invest and operate at full capacity - and warned the UK could fall into recession by the third quarter of the year.
Suren Thiru, head of economics at the BCC, said: “Although surging global energy and commodity prices aren’t typically something in the UK government’s direct control, more needs to be done to help consumers and businesses through this difficult period."
Imran Hussain, director of policy and campaigns at charity Action for Children, said more families were starting to "run out of road" as they faced inflation at its highest level in a generation.
“They need help with meeting basic living costs now, not warm words hinting at action in the future," he added.
