Almost seven-in-ten companies expect their energy costs to increase in the next quarter.

That’s according to new polling by the Confederation of British Industry (CBI) which suggests almost a third of businesses anticipate rises of more than 30%.

The research also found that 30% of firms see energy price rises as likely to negatively impact current or planned investment in ‘green’ projects.

A few days ago, a survey by the Federation of Small Businesses showed that nearly 53% of small companies expected to stagnate, downsize or fold in the next year.

The CBI has called on the government to announce a business rates freeze for 2023/24 to help keep costs down.

Matthew Fell, CBI Chief Policy Director, said: “While helping struggling consumers remains the number one priority, we can’t afford to lose sight of the fact that many viable businesses are under pressure and could easily tip into distress without action.

“The guiding principles for any intervention must be to act at speed, and to target help at those households and firms that need it most.

“Firms aren’t asking for a handout. But they do need autumn to be the moment that government grips the energy cost crisis. Decisive action now will give firms headroom on cashflow and prevent a short-term crunch becoming a longer-term crisis.”