British charities and small businesses have warned that a new levy on energy bills, intended to support the government’s nuclear power ambitions, could raise their costs by thousands of pounds a year.

The extra charge could mean a significant cost hike for charities and small businesses with high energy use, meaning community services may be cut and economic growth curtailed, according to trade groups.

For most charities, the levy, which takes effect in November, will mean an increase in costs of between £100 and £240 a year, but some could experience increases of up to £2,500, according to Social Investment Business, an organisation that offers loans and financial support to charities.

Nick Temple, the chief executive of Social Investment Business, said: “Adding yet more charges on top

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