Government must act quickly warns the hospitality industry

The hospitality industry has warned the new Prime Minister that they 'must act quickly' to address the new energy crisis that is having a huge impact on many businesses within the hospitality sector.

The energy crisis

With energy bills soaring, many businesses in the hospitality industry are struggling to stay afloat with some already being forced to close their doors.
After the pandemic already sent the hospitality industry into crisis, the rise in bills is only further deflating many businesses' progression towards recovery and causing major concerns for people's jobs and livelihoods.

Pre-pandemic, the hospitality industry spent 10 billion a year and employed 3.2 million people, however with energy bills for businesses of hospitality now rising by 300%, they are in desperate need of support if they are going to be able to contribute to the UK’s economic growth.
A plea for the Prime Minister to take action
On the 5th of September Liz Truss was elected as the new Prime Minister and it was not long before she faced a warning for action to be taken against the soaring bills.

Kate Nicholls, the CEO of UKHospitality addressed Truss by stating: ‘Congratulations to Liz Truss on her election as the new leader of the Conservative Party and our Prime Minster. We very much look forward to working closely with her and the new cabinet in the coming week as we strive to save the hospitality industry which is experiencing crushing cost rises.’

She also warned that the new government needs to act quickly before it is too late to help save the industry from depleting any further.

This was followed up by Michael the CEO of the Nighttime Industries Association which is responsible for the representation of a range of independent bars and nightclubs across the UK.

He stated: ‘Over the coming weeks without an effective intervention from the Government, we will see thousands of businesses go to the wall and millions of jobs lost’.
However, concerns for the hospitality industry amidst this energy crisis continue as it seems the Governments focus is currently directed towards households rather than businesses.

This raises concerns for pubs, bars, nightclubs, and restaurants alike who are struggling under the pressing costs, previously of food and wage inflation, and now soaring energy bills.
Martin William, CEO of Rare Restaurants declared: 'It is time to reverse the VAT increase made in April and have a comprehensive review and reduction in business rates so that Hospitality has parity with the retail sector.'
In these uncertain times, it is essential hospitality businesses have confidence in their employees. If you are looking to hire experienced and qualified candidates to support your business during the energy crisis, get in touch with JWR today.