Business energy support scheme "lacks considerable details" rules industry

Alex South

Alex South


Britain's hospitality industry have called for more clairty from the government after Prime Minister Liz Truss announced an initial 6-month support scheme for UK businesses following soaring energy bills and a cost-of-living crisis.

Speaking to the commons, Liz Truss has outlined her plans to support businesses and prevent further closures resulting from increased energy costs.

In her announcement, the PM confirmed an "equivalent guarantee" to British households would be offered after she revealed typical households would pay no more than £2,500 a year, for the next two years from October.

Kate Nicholls, CEO of UKHospitality, welcomed the plans from the Prime Minister describing them as a: “positive plan to start tackling cost of doing business & energy crisis," but stressed more detail was urgently needed for businesses. 

Stressing that the plans still failed to specify particularly measures, she added: “Businesses cannot wait for 3 months to find out what support is planned, nor can they wait until the end of the price freeze to receive it - without urgent details who and how it will be targeted, many hospitality biz will be forced to take difficult decisions.”

Echoing Kate’s comments on the government's support plans, the British Beer and Pub Association, announced support for the plans but admitted that not enough detail had yet been given by the Prime Minister on what the support measures would include.

In a statement, the industry body said: "We still need detail on the level of the cap, but this intervention will hopefully help thousands of business owners to breathe a little easier in the coming winter months."

Michael Kill, CEO of the Night Time Industries Association, slammed the announcements from the govenrment stating he was "extremely disappointed" with the Prime Minister's announcements. 

In a post on Twitter, Michael stated that: "This half measure package is tantamount to the delivery of support experienced during the pandemic, but lacks considerable detail to alleviate current business concerns.”


The support being announced by the prime minister and the government follows soaring energy bills for businesses throughout the hospitality industry.

James Allcock, Owner of the Pig & Whistle, who recently revealed he was expecting a 700% increase in his annual energy bills, took to Twitter to detail how energy was costing his business.

As a result, nearly 300 UK hospitality businesses have signed an open letter to the government warning the industry will not survive without support to deal with rising costs.

Signatures include Marriott International, Mitchells & Butlers, Pizza Hut UK, Caffè Nero, and Merlin Entertainments, as well as smaller businesses from across Britain’s hospitality sector.

The letter follows new figures from trade body UKHospitality, which showed that three in five operators are no longer profitable due to rising costs.

Those who signed the letter are asking for the following measures:

1. A 10% headline VAT rate for hospitality
2. A business rates holiday for all hospitality premises, with no caps applied
3. Deferral of all environmental levies
4. Reinstatement of a generous HMRC Time to Pay scheme
5. Reintroduction of a trade credit insurance scheme for energy

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Alex South

Alex South

Editor 8th September 2022

Business energy support scheme "lacks considerable details" rules industry