North East businesses urged to act on rising energy costs

The warning comes amid concerns that inaction could put companies and jobs at risk, with RMT Accountants & Business Advisors in Gosforth advising firms to address financial pressures early.

Chris Ferguson, director of recovery and restructuring at RMT and a licensed insolvency practitioner, said: “The last few months have been tough enough for many companies, with challenging trading conditions, rising staffing costs and increasing National Insurance contributions all having a significant impact on their finances.

“Recent global events have added even more pressure, leaving many North East business owners feeling stretched to breaking point.”

The conflict in the Middle East has triggered a sharp rise in fuel and energy costs, putting additional strain on businesses, particularly in the transport and manufacturing sectors.

Rising domestic fuel bills are also impacting consumer spending, further affecting the leisure and hospitality industries.

Mr Ferguson believes early intervention can help businesses avoid formal insolvency and protect jobs.

He said: “It’s essential for them to remember that there are options available that could go a long way towards safeguarding their operations and the jobs of their employees.

“The range of solutions that exist to help companies with financial problems is wider than it has ever been, with many options available that don’t involve going through a formal insolvency procedure.”

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Recent data shows that 13,676 North East businesses experienced significant and early-stage financial distress in the final quarter of 2025, up 7.9% on the previous quarter and 11.5% on the same period the year before.

Mr Ferguson warned that prolonged conflict could have a lasting impact.

He said: “As well as the immediate impact that businesses are seeing on their costs and cashflow, there’s the potential for a delayed second wave of pressure in the months ahead if the conflict drags on, especially as current energy contracts come to an end.”