UKHospitality has welcomed the news that government will expand its help for businesses with their energy bill following the introduction of the Energy Prices Bill yesterday but warns that the sector needs longer term measures including a lower rate of VAT.
The expanded scheme is an extension of the energy subsidy announced in September. At that time eligibility was based on energy deals signed after April 1 this year. The new rule sets this date to December 2021.
Responding to the introduction of the Bill, UKHospitality Chief Executive Kate Nicholls said, “The government’s intervention to support hospitality businesses facing soaring energy costs this winter is extremely welcome and it’s fantastic to see this legislation introduced. The measures in this Bill will provide relief to all manner of hospitality businesses, from the smallest companies to the largest.
“The introduction of these measures follows months of campaigning by UKHospitality to ensure the government recognised the huge impact rising energy costs will have on our sector.
“I’m pleased that the government has continued to listen to the sector to ensure its relief package is inclusive for all. Its decision to expand the scheme to include operators on fixed price contracts agreed from 1 December 2021 has avoided unfairly penalising businesses who had acted early to protect themselves from further price hikes. The publication of wholesale energy prices will also provide much-needed clarity for businesses.
“Unfortunately, the reality of this crisis means that, even with this support, energy bills will still be much higher than last year and many hospitality businesses will struggle to make it through to next spring. What the sector really needs now is the introduction of longer-term measures that can allow us to boost economic growth, namely a lower rate of VAT and further business rates relief.”