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Manchester Evening News
Manchester Evening News
Entertainment
Ben Arnold

Hospitality leaders wants to see ‘fine print’ of the government’s business energy cap

With news that the government is set to introduce an energy bill price cap for businesses, hospitality owners are calling for the ‘fine print’ in a scheme that promises to discount bills for six months. The Energy Bill Relief Scheme will come into effect on October 1.

It follows calls from businesses to the government for assistance, with many reporting staggeringly high quotes from energy companies. The treasury has now said that energy bills will be capped at ‘less than half’ what has been anticipated for the winter.

In announcing the plan, Prime minister Liz Truss said: “As we are doing for consumers, our new scheme will keep their energy bills down from October, providing certainty and peace of mind.

"At the same time, we are boosting Britain's homegrown energy supply so we fix the root cause of the issues we are facing and ensure greater energy security for us all."

All non-domestic energy customers will see prices capped at at £211 per MWh for electricity, and £75 per MWh for gas until the spring. However, not all are convinced that a six month plan is enough, or whether it will stop some businesses already struggling in the wake of the pandemic from folding.

Sacha Lord at the Britons Protection (Darren Robinson Photography)

Sacha Lord, Manchester’s night time economy advisor to the mayor, said: “I'm pleased that the economic importance of pubs and the hospitality sector is finally being recognised and that support is being pledged beyond this initial six month period. Businesses need to be able to plan ahead and forecast expenditure as a basic feeder of growth and investment and these plans may go some way to staving off the redundancies we have been expecting across the sector.

"However, only time will tell if the Government has gone far enough. Even with this help, businesses will still be paying more than they’re used to, and off the back of the pandemic, the real concern is whether they can afford to continue trading even with the support being offered.

"The hospitality sector is the fourth biggest employer in the UK, and its importance needs to be reflected in the support it is given. We are still pushing the Chancellor to offer wider support in his fiscal statement on Friday, including a reduction in VAT and business rates relief, both measures that will undoubtedly offer a lifeline to the sector."

Tampopo's David Fox (Manchester Evening News)

“Most small businesses are not utilities experts,” said Tampopo co-founder David Fox, who has been quoted increases of up to 400% on his bills in recent months. “My job is to try and create a great experience for customers, not have a wide knowledge of how to hedge on electricity prices with government intervention.

“This is welcome, and it has to happen to avoid mass closures and significant unemployment. So the reality is that they had no option, but the sooner the fine details are nailed down the better, so we can crack on plan for the run up to Christmas and the winter.

“Ideally we’d want longer, but if I were in government, I’d only offer six months as well. The market will be better in six months. I get why they’re doing it, and I do have some sympathy for their situation.”

“It feels like a bit of smoke and mirrors,” said Matty Farrell from Graffiti Spirits Group, which owns the likes of Bold Street Coffee and Salt Dog Slims and has 10 sites around the north west. “It might look good on the surface, but in the finer print, it’s kicking the can down the road. That’s been the issue right through the pandemic.

“I don’t buy it. Six months in business is nothing. If there was a plan for the next three to four years, surely that stimulates growth, especially if you’re a small independent. They need stability, and that’s the issue. I think what’s happened already is outrageous, regardless of this.”

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