Swelling energy bills and a softening UK economy have sparked a surge in small business closures in Mendip, as closures across the UK reached their highest level since 2017, new figures show.

Business leadership group the Institute of Directors said that, while businesses open and close all the time, the uncertainty caused by the coronavirus pandemic "complicated" the business landscape across the country.

Office for National Statistics figures show 445 business closed in 2021 – up from 395 in 2020, but down from 470 in 2019, before the coronavirus pandemic hit.

As rising costs bite down, the survey by Purbeck Personal Guarantee Insurance has uncovered the measures being taken by small firms across the UK to keep themselves afloat.

42% have implemented price increases, topping the list followed by energy-saving measures being used by 31%. 23% are increasing or changing their business hours, while 20% are looking for extra financial support either in the form of new investment or an extension of an overdraft limit.

According to small business expert and marketing consultant Dennis Consorte, it's "no surprise" that many small businesses are in a vulnerable position.

"Small businesses have struggled to survive two years of COVID lockdowns," Consorte says. "Many of those who made it through are likely to be low on the resources and energy required to survive the highest levels of inflation in 40 years."

Todd Davison, MD of Purbeck Personal Guarantee Insurance added: "Small business owners continue to show immense resilience and are taking sensible measures to manage costs as a matter of survival.

"The key issue is that small businesses must not over-extend themselves financially given the rise in interest rates and risks of signing personal guarantees for business loans. If access to new funding is vital and investors are proving hard to find, then expert, independent advice from a professional such as a commercial finance broker is critical. This will help to ensure the right loan product is secured for the business's needs."