Energy support could be halved
This comes as the Government has reportedly planned to halve energy support for businesses from March, when the current plan expires, as reported by the BBC today (Wednesday 4 January),
However, night-time economy adviser for Greater Manchester, Sacha Lord, urged the Chancellor to “understand the depths” of the energy crisis and “listen to the swathes of business voices” calling for help.
A Treasury spokesperson said: “We are protecting businesses from high energy costs this winter, caused by Putin’s invasion of Ukraine, through the six-month £18bn Energy Bill Relief Scheme.
Longer-term affordability
“However, this is very expensive, and we need to ensure longer-term affordability and value for money for the taxpayer.
"That is why we are currently carrying out a review with the aim of reducing the public finances’ exposure to volatile international energy prices from April 2023.”
Additionally, the Treasury stated the overall scale of support for businesses will cost the taxpayer significantly less than planned compared to the initial six-month Energy Bill Relief Scheme.
However, UKHospitality chief executive Kate Nicholls shared on Twitter if the proposed plans to halve support were to go ahead, it would be “absolutely devasting” for the sector.
This would be absolutely devastating for hospitality sector which has faced average bill increases of 200%+ since April. Vital additional support maintained for hose sectors recognised as vulnerable https://t.co/fa3bvoKj0R
— Kate Nicholls OBE (@UKHospKate) December 30, 2022
Government failure
Details of the revised scheme are expected to be released next week, though it is anticipated to run for 12 months, according to the BBC.
Furthermore, the BBC claimed the Chancellor was scheduled to meet with business groups, including UKHospitality, today.
Lord added: "I am encouraged to see efforts being made by the Chancellor to meet with business groups and understand the battles being faced across the board.
"We need a clear, urgent and defined strategy outlining how business owners across the UK can survive the expected surge in costs.
"The UK's industry sectors are intertwined, and after the jolts of the past three years and the resolve all industries have shown in their bid for recovery, it would be a failure of this new Government to simply stand by and let business fall at the last hurdle."
