The British Beer & Pub Association has today written to Energy Secretary Amber Rudd setting out the concerns of industry at the impact of recently-announced policy changes. Modifications announced at the Budget in March could mean extra costs of nearly £44m across the pub sector (around £900 per pub). The BBPA is calling for clarity from the Government on what its future plans are.
Although the BBPA is broadly supportive of reforms to business energy efficiency policy there are serious concerns about the impact on small businesses. The abolition of the Carbon Reduction Commitment (CRC) announced at the Budget means that the Treasury will look to recoup funds from elsewhere. This will mean increases in the Climate Change Levy (CCL) of 52 per cent and 74 per cent for electricity and gas respectively by 2019. The increases across the sector add up to £44m or roughly £900 per pub each year.
The BBPA is also calling on the Government to establish clarity on the future intentions for CCL rates to 2025 and for a timetable for review of CCA targets to be set out.
The BBPA will be hosting a Pub Industry Energy Symposium on Thursday 5th May designed to help pub operators navigate the big, and potentially costly, changes, and to help them find ways to secure major future savings on their energy bills.
BBPA Chief Executive Brigid Simmonds said:
“Energy policy is becoming an ever bigger issue for pub operators, and there are many changes coming down the tracks. It is important that both large and small businesses are given clarity and a fair deal. We are particularly keen to ensure that small pubs are not disadvantaged by the decision to abolish the Climate Reduction Commitment.
“I hope the Government will set out a clear roadmap for future plans so that brewers and pub operators are able to keep on top of these substantial issues. In the meantime, we will provide as much support as we can to licensees to reduce the burden of energy costs, including the launch of new guidance at our forthcoming symposium.”