Pubs ‘won’t stay afloat’ without energy bill help in Spring Budget

THE HOSPITALITY sector has warned that many businesses “won’t stay afloat” if the government does not look to provide extra support with soaring energy bills in its upcoming Spring Budget.

“The steep increase in utility costs is having a significant impact on our business, it’s now one of the largest costs to manage,” Simon King, who is founder of Igniting Hospitality and also runs The Victoria, a pub in Surrey, told City A.M.

Ahead of the budget on 15 March, he is now calling for greater support, either through subsidies or business rate relief.

“Unfortunately without some government intervention, it is likely that many businesses small and large won’t survive,” he said.

The plea comes as the government revealed it is set to reduce the amount of relief it provides businesses in relation to energy bills in April.

The support will only apply to 70 per cent of energy used by businesses, while also raising the threshold in energy costs for when support kicks in.

Anthony Ainsworth, chief operating officer at Npower Business Solutions, was also concerned the scaled-back package could leave businesses exposed. To help ease bills, he called on the government to “double down” on helping firms reduce their energy consumption through greater energy efficiency.

“More support is needed now,” Ainsworth told City A.M. “We are working closely with our customers to help them implement the most effective energy strategy over the coming months, but we know that more incentives to help businesses reduce energy demand would be hugely welcome.”