Hospitality bosses slam government’s ‘drip fed support’ on mounting energy bills
Hospitality leaders have said the government’s freshly announced energy bill support is a drop in the ocean compared to the mounting costs facing the sector.
Prime Minister Liz Truss has revealed a six month scheme to support businesses, offering equivalent support as for households.
The scheme will be reviewed in three months to see if support should be more focused on particular industries.
The energy price cap is to be fixed at £2,500 a year for a typical household, for two years from 1 October.
A coalition of hospitality groups named #BusinessSOS called for measures including a VAT reduction to 12.5 per cent, 100 per cent business rates relief until next year and a discounted price on energy bills.
Truss’ announcement was a “harrowing moment for our high streets,” Matthew Sims, founder of #BusinessSOS and CEO of Croydon Business Improvement District said, following the speech.
He added: “The clock is already ticking, and businesses simply do not have the time to wait for a review. Businesses need action, and they need it now.”
The announcement represented a “half measure package,” according to Michael Kill, CEO of the Night Time Industries Association (NTIA), who said the nightclub sector would be left “extremely disappointed.”
“We have no time for drip fed support, or to await the impact assessment of incremental measures, this needs to be a concise and immediately accessible package, which is proportionate and scalable,” he added.
Some industry chiefs said the support package would help venues to make it through the winter ahead.
The scheme would “help thousands of business owners to breathe a little easier over energy bills,” in the coming months, Emma McClarkin, chief executive of the British Beer and Pub Association (BBPA), said.
Hospitality representatives said they would await to see the details of the plans.
“Today’s announcement looks to tackle the specific energy issue and we look forward to again working closely with Government to urgently deliver the wider package of investment that will be needed to allow our members to trade through these exceptional challenges and be at the heart of growth in our economy,” Steve Alton, CEO of the British Institute of Innkeeping (BII) said.
The BII has previously said the majority of its members are experiencing a minimum 300 per cent increase in energy costs, all while venues attempt to recover from the side effects of the Covid-19 pandemic.
It comes as pubs are facing heftier operational costs and staff shortages while punters are tightening their purse strings amid historic levels of inflation.