The prospect of closure looms over thousands of B&Bs, hotels and other hospitality businesses across the UK as the industry’s energy bills rise by an average 238%, according to industry lobby group UKHospitality.
Last week in a statement to MPs, Prime Minister Liz Truss revealed plans to introduce the six-month cap on business energy bills, stating that this cap will be reviewed after three months.
UKHospitality CEO Kate Nicholls said: “We very much welcome the Prime Minister’s recognition of the specific struggles the hospitality industry faces and the promise of further support, alongside her positive plan to help consumers and businesses tackle rising energy bills.
“We look forward to working with the new Government on developing plans that will support long-term recovery for our sector but in order to give businesses big and small a chance to make it to the spring we will need support this autumn and winter. Measures need to provide a swift cash injection, such as cutting VAT for the sector to 10% and providing business rate relief.”
But she stressed that while the welcome energy price freeze will ease the pressure on the hospitality sector, high bills will still constrain spending and operators themselves will still have to fund energy bills and other rising costs. “For many hospitality businesses this will prove too much to bear and hundreds of community assets will be shut and jobs lost unless additional support is brisk and bold,” she said.