The government is “acutely aware” that many businesses have contracted at higher prices and subject to increased standing charges and is “keen to try and find a solution” to the challenges they are facing, Minister Kevin Hollinrake has said.
The Parliamentary Under Secretary of State at the Department for Business and Trade, and designated Minister for Hospitality told attendees at to recent B-Corp event, organised by Hawksmoor, that while there has been a significant reduction in the wholesale price of energy, there are many businesses that are suffering, having contracted at higher fixed rates, with the Energy Bill Relief Scheme due to end shortly.
“There is a significant reduction in support and that’s not lost on the (Hospitality Sector) Council,” he said. “We are keen to try and find a solution. We are working with Ofgem, the Chancellor is interested in this as well, and we are really trying to get the suppliers to play ball and trying to make sure there is some mitigation to these costs.”
He said the Hospitality Sector Council – a collaboration between government and the sector – was also looking issues such as higher standing charges and security deposits being charged and was “working at pace […] to try and make sure good viable businesses get through this”.
The Minister added that while he hopes the Council can be a really strong voice in government for hospitality, and that it was understandable for the sector to be asking for more support, it was also important to focus on what the industry could do for itself.
“The more we can deliver solutions at sector level the better. Nevertheless, we know that very many good businesses could not get through these various crises without government support,” he said.
Addressing the hospitality industry’s calls for a fairer business rates system, Hollinrake said he knew it was a big area of concern and was keen to find a solution but acknowledged that it was a difficult one to solve as it raises a significant amount of money for the Exchequer, as a whole, “so it’s a thorny issue to try and resolve”.
In terms of his three key areas of focus for businesses in general, the Minister said they comprised: the remove of trade barriers; support and mentoring; and access to finance – making sure access to finance is available across the board, either equity or debt finance.
“I know the sector is struggling at times with banks not willing to support the sector and again that’s something we are keen to try and resolve.”
