The Government Business Energy Relief scheme is still leaving businesses with untenable energy costs, with many seeing costs of electricity and gas rise by over 300% compared to 2021, even under the scheme.
While we see the direct impacts of business energy bills, many of these businesses are subject to indirect costs through supply chain and the subsequent drop in disposable income from customers, all of which continues to present significant challenges to businesses without further Government intervention.
Following a survey of the Night Time Economy & Hospitality Sector, there is considerable confusion on how impactful the Government’s Business Energy Relief Scheme is for businesses within the sector.
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59% of respondents feel that the Mini Budget either had no impact or a negative impact on current business with 1 in 3 still unsure of whether it will have an impact.
70% of respondents stated they would either barely breaking even or lose money with the new Government support package of tax cuts and energy relief.
One in two Businesses would not last more than three months without further support from Government whilst 55% of respondents are seeing higher rates for electricity under the Government Energy Bill relief scheme.
One in three of the respondents are seeing over 200% rise in electricity under the current Government Scheme with just under one in five seeing a 300% increase in electric costs compared to 2021.
57% of respondents are seeing higher rates for gas under the Government Energy Bill relief scheme.
One in three of respondents are seeing over 200% rise in gas under the current Government Scheme with just under 15% seeing a 300% increase in gas costs compared to 2021.
89% of respondents asked for the following interventions as part of the Main Budget (Brought forward from Nov 23rd) Reduction in VAT Across the Board (Including Alcohol) 74.4% Extension of Business Rates Relief – 50% Extended Business Energy Bill Relief.
Michael Kill CEO NTIA said, “It is clear beyond anything that the mini budget and business energy relief scheme, even with recent amendments, has left businesses, particularly SMEs and independent operators confused and worried for their future.”
“With businesses still subject to large increases, up to 300% in energy compared to 2021, and the subsequent drop in consumer spend has crippled many hospitality and night time economy businesses.”
“The golden quarter is one of the key trading periods for the sector, where we build cash reserves to sustain the slower months of January & February.
“If we do not get a meaningful intervention, in the form of a VAT Cut and Business Rates Relief, to aid us through this period under current trading conditions, we will see a catastrophic failure of businesses as we move into 2023.”
Speaking about the new Chancellor Jeremy Hunt, Kill warned that thousands of businesses are on the verg of collapse and the government must “not delay the upcoming budget.”
Kill said, “The British Government has all but lost the confidence of the sector, businesses are on the verge of collapse, with many facing an uncertain future leading to the critical golden quarter.”
“A New Chancellor will need time to get up to speed with current policy decisions, time which the Night Time Economy and Hospitality sectors do not have.”
“We have already seen through recent polls that under the current support package, over 70% of businesses are either barely breaking even or losing money, any delay will be critical to their survival.”
“The Government must not delay the upcoming budget, or they will see thousands of businesses and jobs lost before the end of the year.”