British charities and small businesses have raised concerns regarding a new levy on energy bills, set to take effect in November. This levy aims to finance the construction of the Sizewell C nuclear project in Suffolk. Organizations with high energy consumption, such as charities and small businesses, are anticipated to see substantial increases in their energy costs, potentially impacting their financial stability and community services.
For many charities, the annual cost increase due to the levy is expected to be between £100 and £240. However, some organizations may face rises as high as £2,500, according to Social Investment Business. This could hinder their ability to provide essential community services, especially at a time when many are already facing financial pressures.
Small businesses, particularly in sectors like hospitality, may also suffer as the extra costs could stifle growth and complicate the transition to renewable energy sources. The levy is particularly burdensome for smaller entities because exemptions have been granted to energy-intensive industries such as steel and cement manufacturing.
One affected entity, the Bristol-based community arts organization Spike Island, anticipates an increase of £1,000 annually due to the nuclear levy. This rise in costs may restrict their ability to adopt low-carbon heating solutions and could impede their support for underrepresented artists.
Business groups have expressed that the levy represents a disproportionate financial burden on smaller firms, given that larger companies have been exempted. There are concerns that this policy may contribute to higher prices within the hospitality sector as smaller businesses are forced to absorb these added expenses.
A government representative noted the importance of supporting small businesses and charities, emphasizing the broader goal of reducing energy costs through a clean energy initiative. This plan aims to secure job growth and attract investment, although its effectiveness in addressing immediate concerns remains to be seen.
Source: https://www.theguardian.com/business/2025/oct/12/uk-small-businesses-and-charities-say-nuclear-levy-could-add-thousands-to-bills