UKHospitality has written to Rachel Reeves demanding targeted support for the sector, outlining six clear measures that the Government can bring forward to provide targeted energy support for hospitality businesses. 

The letter calls for energy market stability, grants, relief on non-commodity charges, no supplement to support other sectors, a CMA investigation, the reduction of red tape, as well as reiterating the need to cut VAT for hospitality to 10 percent.

“Businesses within the hospitality sector are increasingly concerned about the impact of the crisis in the Middle East and how this will affect our already strained sector,” said CEO Allen Simpson.

“We have been clear that hospitality is facing three consecutive challenges: the direct costs incurred from higher energy prices, higher costs passed through the supply chain and a customer base that cannot sustain raised prices. Fixed-term contracts are providing some short-term protection but this will fall away for many in the coming months.”

The body proposes that energy market stability can be brought about by introducing an obligation for energy suppliers to offer new contracts, a cap on deposits demanded by suppliers, and the avoidance of sector-specific profiling that has previously seen hospitality locked out of contracts.