Industry bodies have renewed calls for government support to aid the sector following the announcement of Liz Truss as newly elected Prime Minister.
UKHospitality, the Night Time Industries Association (NTIA), and the British Beer and Pub Association (BBPA) are amongst those that have called on Truss to introduce measures to help the sector combat rising energy prices and inflationary pressures.
Kate Nicholls, CEO, UKHospitality, called or a reduction in VAT rates and a business rates holiday among other measures.
She commented: “Congratulations to Liz Truss on her election as the new leader of the Conservative Party and our Prime Minister. We very much look forward to working closely with her and the new Cabinet in the coming weeks, as we strive to save the hospitality industry, which is experiencing crushing cost rises.
“The new Government must act quickly and decisively to address the soaring energy bills that are facing consumers and businesses. With the right package of support – including a reduction in the headline rate of VAT for the sector to 12.5%, a business rates holiday, the deferral of all environmental levies, the reinstatement of a HMRC Time to Pay scheme and the reintroduction of a trade credit insurance scheme for energy – the sector will be well placed to aid growth through generating jobs and local investment.
“Pre-pandemic, our industry spent £10bn a year in high-street regeneration and employed 3.2m people but with energy bills for hospitality businesses rising 300% on average – and as high as 750% in some cases – we desperately need a package of support put in place if we are to be able to play our part in the UK’s economic recovery and growth.”
Michael Kill, CEO, NTIA, also called for a reduction in VAT and business rates relief.
He commented: “We would like to congratulate Liz Truss on becoming the new Prime Minister, and look forward to continuing the relationship with the Government under the new administration.”
“It would be hard to disguise the frustration and anxiety experienced across the industry, as we have had to patiently watch the leadership campaigns play out over the last 4 weeks.
“It is now vital that the new Prime Minister takes this opportunity to be decisive in tackling the cost inflation crisis, over the coming days, by reducing VAT across the board, extending business rates relief and implementing an energy cap for small medium enterprise businesses.”
“Over the coming weeks without an effective intervention from the Government, we will see thousands of businesses go to the wall and millions of jobs lost.”
Emma McClarkin, CEO, BBPA said: “I would like to offer my congratulations to the Rt Hon Liz Truss on her announcement as Prime Minister today. It is crucial that the new Government hits the ground running and put plans in place to urgently tackle the rocketing energy prices which are putting pubs and brewers in real jeopardy.
“The pub and brewing sector makes a huge contribution to our economy and local communities throughout the UK, yet is in an extremely precarious position. It’s not an exaggeration to say what we are facing in terms of rising costs could have a worse impact than the pandemic in terms of business closures and subsequent job losses.
“This is why we have written to the new Prime Minister today calling for urgent investment in our sector which will enable us to weather the storm and play a key role in the Prime Minister’s plan for growth.”
