BUSINESSES say they are feeling the crunch as the cost of living crisis looms over their heads.

Gas and electricity prices increased by 54 per cent in April 2022 and they are set to rise a further 82 per cent by October.

Covid-19 and its impact on the High Street saw the collapse of businesses such as: TM Lewin, Victoria Secret, Sofa Workshop and Burton, with many still hanging on by a thread. 

The war in Ukraine has put further pressure on supplies and costs, and economists are predicting the UK economy will enter a recession later this year. 

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The crunch has also been felt in Romsey. 

However, Jess Dugdale, owner of sustainable refill shop and cafe, Lemon & Jinja has a plan to keep her business running through the winter.

The shop opened at Basepoint Business Centre in Romsey in 2019 and sells a wide-range of eco-friendly products. 

She said: "We are ready because we are looking at introducing more products, whether that's affordable food boxes and packaging.

"Our rent has now almost doubled in price but we're now having to adapt to cover the cost. 

"We don't have a choice but to keep moving because if we stop then we suffer."

It's not just retail that is feeling the effects of people watching their spending and rising operating costs. 

SEE ALSO: Hampshire pub set to open this month after three year closure

Melissa O'Dwyer, owner of Little Bee Bakery, which is based at Basepoint in Romsey, said that small businesses like hers were finding it difficult to cope with the relentless challenges.

Hampshire Chronicle: Little Bee Bakery owner, Melissa O'Dwyer (right) and Becky Clarke (left)Little Bee Bakery owner, Melissa O'Dwyer (right) and Becky Clarke (left)

She said: "We've survived Covid, lockdown and the war in Ukraine, which has a knock-on effect everywhere, from supplies to increasing costs, and I think as a small business, it's probably easier for us to react quicker than if we had investors and boards of directors."

Ms O'Dwyer said she is launching a series of products and courses to help the business and her employees stay afloat throughout winter.

She said: "We're launching our cake decorating courses and starting to sell cake decorating supplies. All we can do is carry on doing what we're doing and see where that leads us."

Both of the businesses called on people to support them during this tough time - and they issued a warning to customers that it is a case of 'use it or lose it' once again.