Greater Manchester’s nightlife tsar has called on the government to provide more clarity on the details of the energy support plan announced by Prime Minister Liz Truss earlier today. Sacha Lord has said "its currently unclear what the Government's long-term plan of support is".
The new plans to tackle soaring energy bills across the UK include a cap on domestic bills at £2,500 for the next two years from October, while businesses are to receive an “equivalent guarantee” for the next six months. Expanding on this, the Prime Minister said support will be offered to vulnerable industries, such as hospitality, after the initial six month period.
Truss also said the newly appointed business secretary Kwasi Kwarteng would work with businesses on a review to decide where this support will be targeted. She added that a review would be completed within three months.
In recent months, Sacha Lord, night-time economy advisor for Greater Manchester, and a long-time supporter of the hospitality industry, has called on the government to provide support packages akin to those offered during the pandemic, to help Greater Manchester operators deal with the cost of living crisis. During the Conservative leadership contest, Lord said that a cut to VAT was needed to keep the industry afloat.
Speaking to the Manchester Evening News following today’s announcement, Lord said: “The proposed six-month scheme to help businesses through this energy crisis is a welcome intervention, but it is currently unclear what the Government's long term plan of support is. The UK economy is fuelled by confidence, but with no finalised plan in place for businesses beyond March 2023, I am concerned that the majority of business owners remain in limbo with little steer or advice on how to move forward.
“Not only will this lack of certainty significantly harm the investment potential in UK industry, but I believe many businesses will still be forced to close. With its lack of detail and assurance, I cannot see how this programme will stave off the redundancies in the hospitality sector which we have forecasted."
"I hope today's announcement is a preview of more to come, as alongside a long term plan for energy support, it is imperative the Government also announce their plans for further financial support and tax reductions to address the ongoing inflationary pressures on industry."
Ahead of the announcement, nearly 300 UK hospitality businesses signed an open letter to the government warning the industry will not survive without support to deal with the cost of living crisis. Rising energy bills have already forced some restaurants and pubs to shutter in Greater Manchester, while others are fighting to stay open past Christmas.
In the run up to the Prime Minister’s speech in the Commons this morning, Lord also said that the next few days would be pivotal as operators looked to the new Chancellor to steer hospitality businesses out of crisis. Writing on Twitter he said: “An extremely tense few days ahead.
“The Chancellor, Kwasi Kwarteng is now fully armed with our asks to save hospitality businesses, jobs, the High St and the whole supply chain. Operators are waiting on every word, deciding whether to plough through or close. It's that critical”.
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