Representatives from across the hospitality industry have written to chancellor Kwasi Kwarteng seeking urgent clarity on the energy cap for businesses, and wider support and a long-term plan to secure the future of the sector.
They warn that business owners are making decisions now about whether they can survive the winter, and simply cannot wait any longer to understand whether they should sign new contracts or not.
The letter comes as No 10 says information on energy support for businesses will be announced in this week’s fiscal statement, but payments might need to be backdated to October.
The trade associations also urges the government to think beyond the next six months: “While the energy cap will be a critical lifeline and stem the situation over the next six months… more is needed to ensure businesses can head into winter knowing they have the chance to not only survive, but thrive again.”
The letter calls on the chancellor to bring forward:
- an immediate reduction on VAT on all food and drink sales across hospitality
- cancellation of business rates for the remainder of this fiscal year for all hospitality businesses, regardless of size
In addition, the bodies state that the regulatory burden placed on the sector needs to be eased, noting how upcoming alcohol duty and business rates reform has the potential to further reduce taxes on an already fragile sector.
The joint signatories say: “An energy price guarantee for business will provide some short-term relief for businesses on the brink of closure, but more support is needed, as well as a plan beyond the next six months. The initial announcement helped businesses breathe an initial sigh of relief, but most are still in the dark as to how the guarantee might help them.
“Our industry is one of only a few that supports jobs and livelihoods in every single part of the UK, and we have the potential to deliver growth in every single community we serve. But we’re being held back.
“We need policies that ensure our survival through the winter, which will allow us to invest in the long-term potential of our sector, action on the tax burdens that are stunting our growth, and a government that understands the extremely critical situation we’re currently in.”
The letter is signed by representatives from: the British Beer and Pub Association; the Campaign for Real Ale; the Society of Independent Brewers; UKHospitality; the British Institute of Innkeeping; Hospitality Ulster; the Independent Family Brewers of Britain; and Pub is the Hub.
