Chancellor Kwarteng ‘mini Budget’ expected today
Many sector leaders have called for a raft of measures to help the sector amid the ongoing energy crisis including a VAT cut and reform of the business rates system.
Business secretary Jacob Rees-Mogg announced the Government’s Energy Relief Scheme earlier this week (Wednesday 21 September), which was met by concerns from industry leaders.
Government initiative
The initiative means wholesale gas prices are expected to be fix for all non-domestic energy customers at £211 per mWh for electricity and £75 per mWh for gas for six months.
Trade body UKHospitality (UKH) welcomed the national insurance reversal, which was revealed yesterday, but also called on the Government for further support for the sector through a cut in VAT as well as a reform of the ‘unfair’ business rate system.
The Night-Time Industries Association CEO Michael Kill raised concerns that reducing the wholesale price would not provide “sufficient relief” for businesses as it would mean energy suppliers could impose uncapped additional mark ups such as network charges and operating costs.
Scheme extension
He urged the Government to extend the scheme for 12 months and followed up with further action.
Meanwhile, before the energy help was announced, the Campaign for Real Ale (CAMRA) chief executive Nik Antona also called for more support for the sector.
He said: “If the Chancellor doesn’t use this week’s emergency fiscal event to provide certainty about when and how pubs, social clubs, breweries and cider producers will get help, we risk seeing more of our locals being forced to close before that help reaches them.”
Antona outlined the support should include cutting VAT on food and drink in pubs, help with business rates and the introduction of the new lower rate of duty for draught beer and cider so pubs could compete with alcohol in the off-trade
