New analysis by the Liberal Democrats claims that 55 pubs, restaurants and cafes are at risk of closure across Somerset West and Taunton.
It follows the government laying out their spending plans in last week's budget, with The Chancellor confirming that measures to support businesses with energy bills would change.
The Energy Bills Relief Scheme which supports businesses is set to be replaced at the end of this month with the Energy Bills Discount Scheme, which will run until April 2024.
The reduced support scheme will be worth £5.5 billion to businesses and other eligible beneficiaries over the coming year. However some businesses will miss out entirely, with businesses paying less than £107 a MWh for gas and £302 a MWh for electricity receiving no support at all.
Liberal Democrats are calling for the Energy Bills Relief Scheme, the more generous package, to be extended for a further six months until September.
The party’s Parliamentary candidate for Taunton and Wellington, Gideon Amos, said: “What good is cutting the price of beer in pubs if there are no pubs - or indeed cafes and bars left open?
"The Conservative Government is failing businesses in Taunton and Wellington who are facing the very real possibility of closing their doors this April. If the Tories actually understood hospitality businesses, they would extend energy support for at least another six months as Liberal Democrats have repeatedly called for.”
Nancy Powell-Brace who runs Odette's Tearoom in Wellington said: “The loss of Government support for fuel costs as a result of the Budget is now jeopardising the survival of hospitality businesses like Odette’s.”
Announcing the reduction in support in January, chancellor Jeremy Hunt said: "My top priority is tackling the rising cost of living – something that both families and businesses are struggling with. That means taking difficult decisions to bring down inflation while giving as much support to families and business as we are able.
Wholesale energy prices are falling and have now gone back to levels just before Putin’s invasion of Ukraine. But to provide reassurance against the risk of prices rising again we are launching the new Energy Bills Discount Scheme, giving businesses the certainty they need to plan ahead.
Even though prices are falling, I am concerned this is not being passed on to businesses, so I’ve written to Ofgem asking for an update on whether further action is action is needed to make sure the market is working for businesses."
The government says the new scheme will see: "Eligible non-domestic customers who have a contract with a licensed energy supplier will see a unit discount of up to £6.97/MWh automatically applied to their gas bill and a unit discount of up to £19.61/MWh applied to their electricity bill, except for those benefitting from lower energy prices."
For further information on the Energy Bill Relief Scheme, see the government website.