Cost of living crisis: Winchester businesses feel more support is needed for their survival

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 been felt in Winchester. Owner of the Academy Joe Fellows has a plan to keep his coffee shop afloat this winter. He said: "It's about reacting to other parts of the business and focusing on our other costs, from staff and ingredients. We're now tackling the price increase across the board but focused more on the energy costs.

Staff, Katie Barr-Caldwell (left) and Astra Tsangaris (right) outside of Academy

"It's about being smart with other variable costs to try and tackle that price increase. We're talking to individual suppliers, where we have managed to increase our purchasing to that supplier, and then obtain a five per cent rebate at the end of the year, based on reaching a certain spend point with them."

Understanding his employees may also be affected by the price hike, Joe has increased the hourly pay rate to £10. He also feels this will make a difference in personal productivity.

He said: "We also wanted to do a little bit more for our staff. We're now paying our staff £10 per hour so we can support them, so they come to work and have better morale. We want happy, hard working staff."

Ashby's owner, James Ashby opened December, 2021 and feels people aren't spending when they're out, which is having a knock-on effect with businesses. He said: "The footfall seems to be there but people aren't spending, and that seems to be the biggest issue. And you've got your own business demands, which have gotten worse. We have pivoted the business twice in the last six months and we're probably going to have to do it again. 

Ashby's owner, James Ashby outside of the restaurant

"We're looking at downgrading what we offer during the week just to keep the doors opening and keep people coming in."

Mr Ashby feels not enough is being done from the government and more support is needed to ensure businesses and people can survive. He said: "I think it is just lip service from the government at the moment. I would like to see utilities companies run by the government again, instead of being privatised. I think it has killed it for everybody."

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Earthian Zero Waste shop owner, Katie Campling has been running her shop for two years and says she has been jumping through hoops since her opening day. She said: "It has been difficult. Winchester is an expensive place to run a business. 

Earthian owner, Katie Campling outside of the zero waste store

"We're coming up to our second year of trading and it's been non-stop since we opened our doors. Once you feel you're clear of one challenge, there's another one to face, which means you're constantly in fight or flight mode as a business and it's not really how we should see our independent businesses being."

Earthian opened in 2020 and sells a range of organic herbs, spices, grains, fruit, beans and cereals, while offering a range of soaps, oils and coffee.

Katie, 31, feels there is a lot of talk but not enough action, which is harming independent businesses. She said: "There are things up coming, that are going to make things ten times more difficult, from business rates increasing next year, which are already very high, as well as no real plan to help with the energy crisis or business expenses such as wages and National Insurance. There is a lot being talked about but nothing being done."