Trade bodies warned Chancellor Kwasi Kwarteng business owners were deciding whether they could survive the winter and could not wait any longer to find out whether they should sign up to new contracts or not.
The statement was signed by leaders from the British Institute of Innkeeping, the British Beer & Pub Association and UKHospitality. It read: “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.”
Long-term strategy
This came as No 10 said information on business energy support would be announced in the fiscal statement but payments might need to be backdated to October.
The trade associations also urged the Government to think beyond the next six months, noting “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.”
They called on the chancellor to instigate an immediate reduction on VAT on all food and drink sales across hospitality, as well as cancellation of business rates for the remainder of this fiscal year.
Easing the burden
In addition, the bodies stated the regulatory burden placed on the sector needed to be eased, noting how upcoming Alcohol Duty and business rates reform had the potential to further reduce taxes on the sector.
The joint statement continued: “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.”
