Small businesses folding across UK as energy costs soar Growing numbers of small traders are closing their doors for good in the face of unaffordable costs driven by record inflation. Data published on Friday by the Federation of Small Businesses (FSB) shows 53% of firms expect to stagnate, shrink or fold in the coming 12 months due to the impact of soaring gas and electricity prices. The outlook for some sectors is better than others: 63% of IT and communications businesses expected to grow, compared with only 34% of wholesale and retail firms, and 35% of hospitality operators. Smaller traders, which employ 16m people between them, do not benefit from the energy price cap, which puts a ceiling on costs for households but not for companies. “Without help, we are facing a generation of lost businesses, jobs and potential,” said Tina McKenzie, the policy and advocacy chair at the FSB.