HUGE hikes in the price of energy will be a worse threat to some businesses than the Covid crisis was, it has been claimed.

Some premises are already spending more on gas and electricity than they are in rent, with bills expected to rise to several times their current level.

Restaurateur Andy Lennox, whose businesses include Zim Braai and Nusara, has tweeted: “Covid was awful. This is currently much harder to deal with for many businesses out there.”

He said he had signed a three-year deal to fix his energy bills at an average of 250 per cent higher than they are now.

One of his venues is seeing a 580 per cent rise.

Fixed-price offers made by the energy companies were being withdrawn within hours, he said.

He is calling for the government to reduce VAT in the industry to five per cent.

“I think that’s the only thing you can do to mitigate inflation, the National Insurance increase, the PAYE increase. The only thing that really can be done that is going to have any effect is VAT,” he said.

“Rates won’t touch the sides. Grants will make the issue worse because Covid support flooded the market with money and that’s where inflation came from. The only thing you can do is help those that can trade to mitigate that loss.”

Jeanette Walsh, of the Poole High Street sweet shop Truly Scrumptious, which makes its own fudge, said: “Our electricity is through the roof. It’s going up really quickly. There’s no let-up.”

She said other costs were also rising fast. “I started making fudge 10 years ago, when butter was about £1 for one block of fudge. Now it’s £2," she said.

“All kinds of costs are going through the roof.”

She said customers also had less cash to spend. “We are hearing ‘No darling, we can’t afford that, you’re allowed up to £2’, whereas before it would be £5," she said.

“We have to change. We have to say ‘How much do you want to spend?’ If you’ve got a pound, we will sell you a pound’s worth.

READ MORE: Energy bills could hit £5,500 next April, latest dire prediction suggests

“We need to keep quality because as soon as you lower your quality, no one wants to come with you. We’re trying to work out what we can get that’s the same quality but for a cheaper price. You can’t keep putting your prices up.”

Mark Cribb, owner of Bournemouth’s Urban Guild restaurants, said: “It’s going to have a massive impact. Brexit, the pandemic, and now we’ve got energy and inflation.

"It’s life. It will be a challenge. It will be an expense the customer will have to expect to share, but we’ll do everything we can.”