The hospitality sector has slammed Liz Truss today for failing to protect businesses who have “mounting debt” as a result of the pandemic and now the energy crisis.
Unless the government does something now thousands of jobs are at risk in the coming weeks.
Michael Kill, CEO NTIA told LondonLovesBusiness.com, “We are extremely disappointed at the announcement by the Prime Minister today, this half measure package is tantamount to support experienced during the pandemic, but lacks considerable detail to alleviate current business concerns.
“We have no time for drip fed support, or to await the impact assessment of incremental measures, this needs to be a concise and immediately accessible package, which is proportionate and scalable.”
“As the first major announcement of the Prime Minister and Chancellor’s tenure, the government has failed businesses today, and with mounting debt across the sector we will see many have no choice but to consider the future, placing thousands of jobs at risk in the coming weeks, without additional support.”
A business expert has said that businesses are still set to pay more for soaring energy bills and warned that as a result “businesses face the possibility of temporary or permanent closures.”
Connor Campbell from NerdWallet said, “The Prime Minister has a range of economic and global issues to deal with in her first week in office, but time is of the essence to ensure businesses have the confidence to continue to trade into the winter months.”
“Although the Prime Minister’s Energy Plan may stem the tide in the case of rising energy bills, businesses are still set to pay considerably more in gas and electricity in the coming months compared to last winter. As a result, businesses face the possibility of temporary or permanent closures without support.
“And while an energy price cap freeze at the current rate may ease pressure on households during the winter months, there are still questions that need to be answered for businesses who aren’t covered by this Government intervention.
“There has been plenty of media noise around a potential rise in prices within hospitality, as well as the possibility of office workers being asked to work from home to help save money.
“Businesses will want to know what support will be in place by way of grants or subsidies to support their firms. Also, industries will be waiting to hear whether financial aid will target certain sectors and if so, who will benefit the most?
“A big question that was raised in Prime Minister’s Questions this week was where the money is going to come from to pay for the support. As windfall taxes appear to be out of the question for now, UK business leaders will want to know whether any support will be expected to be repaid and over what time period.”