A NTIA a flash poll of its members assessing the current and new energy relief scheme announced by the Government and the projected impacts on businesses leading into the second quarter of the year, has revealed that a staggering 82% of night-time economy businesses are under threat, with the new scheme expected to have no impact on them whatsoever.
Under the Current Energy Relief Scheme
• 45.2% of Respondents have seen over 200% Rise in Energy Costs
• 11.3 % of Respondents seeing over 400% increase in cost
• Under the current Energy Relief Scheme 48.4% Barely Breaking even – 32.3% Losing Money. (80.7%)
Under the New Energy Relief Scheme
• 51.6% of Respondents will see over 100% Rise in Energy Costs
• 16.1% Seeing over 400% increase in cost
• Under the new Energy Relief Scheme 42.9% Barely Breaking even – 39.7% Losing Money. (82.6%)
Feedback from the sector on what has had the biggest impact on the sector energy crisis included. 43.3% of respondents saying the greatest impact will come from the Government Energy Relief Scheme, 30% Reconstructing & Management of energy Use/Rates and 23.3% relying on Oil & Gas Market Fluctuation.
It has also been highlighted by many in the sector that while the energy relief scheme alongside oil and gas market fluctuation has brought the energy prices down, there is still a considerable level of financial pressure being placed on the sector through indirect costs from the supply chain, who are faced with a similar trading environment. The challenge is that frontline businesses are unable to increase current price levels for fear of impacting consumers at a time when they have less disposable income.
Michael Kill CEO NTIA Says:
“Independent businesses are being ignored, recent figures from CGA Neilson have shown a 13% contraction in independent licensed premises businesses, compared to 3% contraction in the managed sector.”
“While the Government talks about long term strategy and growth, businesses and livelihoods are being lost today. Energy companies have profiteered off the Government’s energy relief scheme, to the detriment of the night time economy and hospitality sectors.”
“With today’s figures showing a significant shift in fortune from April when the new energy relief scheme is implemented, with 7.4% more businesses losing money after April under the new scheme, with a total of 82.6% either losing money or barely breaking even under the new scheme compared to 80.7% under the current relief scheme.”
“The Government must commit to support for the industry in the coming March Budget.”
Sacha Lord NTE Advisor Greater Manchester / Chair NTIA says:
“Throughout, the Government seemed only interested in getting feedback from the big Hospitality chains, when actually the independents make up 80% of the sector.”
“Not only have, in many cases, the energy firms cashed in on the support, by failing to pass it on to businesses; but we are now seeing that the support isn’t really touching the sides.”
“We are all seeing daily closures now, across the whole of the UK, with London seeming to feel the impact the most.”
“I cannot understand why this current Government has failed the sector, unlike other Governments across Europe, who recognise the importance of the sector.”