Disappointment by Delay on Energy Support but Alcohol Duty Freeze Welcomed

The governments delay to an announcement regarding extended energy support is “disappointing” say sector leaders.

Earlier this week the government issued a statement saying that the decision on futureenergy support for businesses is postponed until the New year, however the government has announced a freeze in alcohol duty.

Commenting on the delay UKHospitality CEO, Kate Nicholls, said:
“The Government’s postponement of an announcement on future energy support until the New Year, comes at a time when businesses are facing rising bills and rates that fluctuate daily. Operators thus need urgent clarity in order to make business critical decisions for 2023 and, in the meantime, we urge OFGEM to continue to pressure energy suppliers to deal fairly with commercial customers and to clamp down on poor practices and unfair terms.

“News of a Duty Freeze on alcohol until August 2023, however – something UKHospitality has been urging the Government to do – is more welcome. Any inflation-linked hike in alcohol duty would have heaped further pressure on the sector and, ultimately, a six-month delay is good for businesses and good for consumers.
“These changes, coupled with duty reform, should also mean a reduction in duty for draught beer and is a good example of smart regulation helping businesses. It’s essential now that drinks producers also recognise this freeze in their own pricing to support their hospitality customers at this difficult time.”