Hospitality businesses are committed to reducing their carbon footprint, but government partnership with the sector is crucial to achieving these goals due to the ongoing cost of doing business, UKHospitality has warned.
The trade body gave the recommendation in response to the government’s Net Zero Review. It said that additional financial incentives would be required to help speed up the transition to net zero by 2040.
Examples of the ways it could meaningfully support the sector include introducing targeted measures to incentivise the investment in sustainability through grants, loans or tax credits.
For example, reintroducing the Enhanced Capital Allowances scheme for energy and water-efficient plant and machinery that ceased in March 2020.
Tax relief for businesses replacing major equipment, and support to upskill businesses, particularly SMEs, with practical steps on how they can reduce their carbon footprint and aid the transition to net zero, it said.
Kate Nicholls, chief executive, UKHospitality said: “Working towards our sustainability goals is an absolute priority for the hospitality sector and there has been a huge amount of work that has already gone into this by hospitality businesses.
“Unfortunately the situation for many businesses now is that, due to the energy crisis, they are fighting to survive the winter. That does mean that cashflow is tight and confidence to invest is being quickly eroded.
“This reality does mean that the sector would really benefit from a partnership with government to aid its transition to net zero, through financial incentives such as grants or tax credits that can allow businesses to replace equipment with greener alternatives or take part in training to boost our net zero knowledge.”
Earlier this month, UKHospitality launched its Sustainability Commitment programme aimed at guiding the sector to net zero by 2040, which comprises 10 pledges in four key areas: waste, supply chain, skills, and biodiversity.
