NTIA Says Energy Costs Intervention Too Little Too Late With 70% of Businesses Still at Risk

The Government Business Energy Relief scheme is still leaving businesses with untenable energy costs, with many seeing costs of electricity and gas rise by over 300% compared to 2021, even under the scheme. While we see the direct impacts of business energy bills, many of these businesses are subject to indirect costs through supply chain and the subsequent drop in disposable income from customers, all of which continues to present significant challenges to businesses without further Government intervention.

Following a survey of the Night Time Economy & Hospitality Sector, there is considerable confusion on how impactful the Government’s Business Energy Relief Scheme is for businesses within the sector.

Headline Survey Figures:

59% of Respondents felt the Mini Budget either had no impact or a negative impact on current business with 1 in 3 still unsure of whether it will have an impact.
70% of Respondents stated they would either barely breaking even or lose money with the new Government support package of tax cuts and energy relief.
1 in 2 Businesses would not last more than 3 months without further support from Government
55% of respondents are seeing higher rates for electricity under the Government Energy Bill relief scheme.
1 in 3 of Respondents are seeing over 200% rise in electricity under the current Government Scheme with just under 1 in 5 seeing a
300% increase in electric costs compared to 2021.
57% of respondents are seeing higher rates for gas under the Government Energy Bill relief scheme.
1 in 3 of Respondents are seeing over 200% rise in gas under the current Government Scheme with just under 15% seeing a 300% increase in gas costs compared to 2021.
89% of Respondents asked for the following interventions as part of the Main Budget (Brought forward from Nov 23rd) Reduction in VAT Across the Board (Including Alcohol) 74.4% Extension of Business Rates Relief – 50% Extended Business Energy Bill Relief.

Michael Kill CEO NTIA Says
“It is clear beyond anything that the mini budget and business energy relief scheme, even with recent amendments, has left businesses, particularly SMEs and independent operators confused and worried for their future.”

“With businesses still subject to large increases, upto 300% in energy compared to 2021, and the subsequent drop in consumer spend has crippled many hospitality and night time economy businesses.”

“The golden quarter is one of the key trading periods for the sector, where we build cash reserves to sustain the slower months of January & February. If we do not get a meaningful intervention, in the form of a VAT Cut and Business Rates Relief, to aid us through this period under current trading conditions, we will see a catastrophic failure of businesses as we move into 2023.”