It’s bad enough that the UK has to put up with a corrupt and extortion racket energy market in peace time, but throw in a war that hits energy prices across the globe, and we have a pricing crisis. So what are you going to do about it UK Gov?
The CEO of UKHospitality has written to the government to demand support for businesses impacted by rising costs associated with the conflict in Iran.
In a letter addressed to energy secretary Ed Miliband, Allen Simpson called for a comprehensive package of financial assistance, including action on VAT and business rates.
“The two clearest modes of support are on VAT and business rates,” wrote Simpson. “A reduction in the sector’s VAT rate would be quick to implement and easy to administer, given the experience during the pandemic.”
“Likewise, business rates reliefs could be applied at local authority level – in the last energy crisis hospitality received a 75 percent relief on business rates bills.”
The letter follows the trade body’s attempts to induce the Competition and Markets Authority to launch a market investigation reference into the energy market, after a successful intervention in 2016.
However, in his letter to Miliband, Simpson said: “A MIR has been ruled out by the CMA at this time and will likely only take place with political backing.”
“Non-commodity costs attached to [energy] bills are already excessive and the government should be looking at whether some or all of these can be suspended.”
Hey Ed, serving warm beer and turning off fridges is not a solution to hospitality’s war inflicted energy crisis
It’s not been a great week for energy secretary Ed Miliband. It started with the reportedly stunning response that pubs should serve their beer at warmer temperatures and switch off bottle fridges during overnight hours to reduce increasing costs. And now the beleaguered secretary faces a strong force of anger to act on investigating possible wrong-doings in the energy market during the Iran war.
In truth, he’s no stranger to the beleaguered state – he has built a career of multiple high offices on that very talent. But now he has a chance to redeem himself. Miliband is under pressure to do something that actually sits comfortably within his political philosophy – hit the money-grabbing racketeers where it hurts.
And yet he’s spluttering – even more so than when he tackled a bacon sandwich during an election campaign. It would be both shameful and shame-faced if the energy secretary didn’t intervene and enforce an investigation into the energy market. He has been the most vociferous proponent of zero carbon energy supply and a lead player in a government that has put cost cutting at the top of its agenda, and most recently, a government that has put the energy companies on notice not to make capital from the war in Iran.
He’s seen two decades of price abuse by the energy companies in the marketplace under his predecessors and has enabled that to continue – and worsen – in his near two years in office.
If only he would put the same energy into fighting the energy companies as he did his own brother – and then we would all raise a pint of sickly warm beer in gratitude.
