Energy support detail to come ‘in due course’

Prime Minister Liz Truss yesterday (Thursday 8 September) announced a new ‘Energy Price Guarantee’​ where from 1 October, households will pay up to an average £2,500 a year on their energy bill for the next two years.

For businesses, a new six-month scheme will offer equivalent support as is being provided for consumers with the view to provide ongoing focused support for vulnerable industries.

Responses to the announcement were mixed with many calling for more detail on the strategy.

Crushing impact

The British Institute of Innkeeping (BII) said it had left the Government in no doubt about the “crushing impact” energy costs are having on its members businesses and it was pleased this was specifically recognised in the announcement.

Chief executive officer Steve Alton added: “Beyond the impact of energy, pubs across the nation have seen their long hoped for recovery stopped in its tracks by chronic staff shortages, repaying pandemic specific debts, a crippling rise in the cost of doing business through inflationary rises and a squeeze on consumer spending, with many pubs already loss making.

“Escalating energy costs have rendered long-standing essential local business simply unviable.

“We await the detail on how this price guarantee will be applied for our nations’ pubs and the impact this will have on their survival.”

Developing plans

Furthermore, UKHospitality chief executive Kate Nicholls welcomed the Prime Minister’s recognition of the specific struggles the sector faces.

She added the trade body is looking forward to working with the new Government on developing plans that will support long-term recovery for the sector but said support will be needed at all businesses this autumn and winter if they are to make it through to spring.

Nicholls said: “Measures need to provide a swift cash injection, such as cutting VAT for the sector to 10% and providing business rates relief.

“While the welcome energy price freeze will ease the pressure on our customers and colleagues, high bills will still constrain spending in the sector and operators will still have to fund energy bills and other rising costs.

“For many hospitality businesses, this will prove too much to bear and hundreds of community assets will be shut and jobs lost unless additional support is brisk and bold.”