Smarter News Now
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting
No Result
View All Result
  • Top News
  • Economy News
  • Forex News
  • Investing News
  • Stock News
  • Politics News
  • Editor’s Pick
  • Top News
  • Economy News
  • Forex News
  • Investing News
  • Stock News
  • Politics News
  • Editor’s Pick
No Result
View All Result
Smarter News Now
No Result
View All Result
Home Politics News

Hospitality firms plead for energy bill support to survive ‘dire’ situation worse than pandemic

by
August 16, 2022
in Politics News
0
Hospitality firms plead for energy bill support to survive ‘dire’ situation worse than pandemic
0
SHARES
11
VIEWS
Share on FacebookShare on Twitter

A host of hospitality and small business bodies yesterday warned that many pubs, restaurants and hotels will not survive the “onslaught” of higher energy costs in the coming months.

Representative bodies including UK Hospitality warned politicians that unlike domestic customers, rates are not capped for small businesses.

Last week analysts at forecaster Cornwall Insight suggested firms would see energy bills rocket by as much as five times come October.

The letter, co-signed by the British Beer and Pub Association (BBPA) and other industry representatives, warned the “stasis of party politics” could not be allowed to “stifle the urgent delivery of action on energy.”

The BBPA’s chief Emma McClarkin separately said last night “the situation is dire (and) what we are experiencing now is arguably worse than the pandemic because we are receiving absolutely no relief on out-of-control energy costs.

The call for support comes amid growing concern in the City that the largest listed hospitality and retail firms’ outlooks are uncertain due to rising costs, which are occurring at the same time as disposable income is being squeezed – a perfect storm for retail and hospitality firms.

Federation of Small Businesses’ policy chair Tina McKenzie said “any cost of living plan worth the name needs to tackle the mounting energy bills small firms face,” amid ongoing rows between the Tory candidates to become Prime Minister and the Labour party over support on domestic bills.

“Inaction won’t just lead to spiralling prices but to a generation of lost businesses, jobs and potential,” McKenzie said.

In recent weeks JD Wetherspoon has issued a profit warning, with analysts at Berenberg warning “wiggle room” at the low-margin operator had been pressured by rising costs across the board.

Ivor Jones, an analyst at Peel Hunt, suggested investors were being forced to brace for the impact of higher costs on margins.

“When listed companies updated investors earlier in the year they could have reasonably expected the increase in energy costs to be a relatively short-lived spike.

Now we are firmly in the second half, with winter on the horizon, it appears that increasing energy costs are going to drag more heavily on costs.

“Some businesses, notably hotels, have been able to increase prices sufficiently to offset cost inflation. Other businesses in hospitality, those with customers under financial pressure, are going to find the next six months more challenging,”.

Investors appear to be taking note. Shares in pub group Young’s are down 24 per cent on the year, Fuller’s down 16 per cent over the same period, and Franco Manco and The Real Greek owner The Restaurant Group is trading 47 per cent down in 2022.

Last night Ros Morgan, the chief executive of the Heart of London Business Alliance, which represents businesses operating in the West End, said it would be “disastrous if businesses that were supported during the pandemic had to shut their doors now.”

Luxury hotels are not immune from the challenge presented by higher bills.

James Olivier, General Manager at Piccadilly hotel The Dilly, said he was apprehensive of the looming energy price increases.

Our hotel is in the heart of the West End meaning we truly are a 24/7 operation; therefore, we cannot make reductions and at the same time continue to give our guests the high level of service they expect,”.


ShareTweetPin

Related Posts

Over 1,000 regional businesses are fending off cyber-attacks with police-led cyber resilience
Politics News

Over 1,000 regional businesses are fending off cyber-attacks with police-led cyber resilience

August 23, 2022
British Airways to cancel further flights up to the end of October
Politics News

British Airways to cancel further flights up to the end of October

August 23, 2022
Microsoft in trademark row with UK children’s reading firm Word Windows
Politics News

Microsoft in trademark row with UK children’s reading firm Word Windows

August 23, 2022
Crypto fraud revenues drop 65% following market meltdown
Politics News

Crypto fraud revenues drop 65% following market meltdown

August 23, 2022
Key UK mortgage rate passes 4% for the first time since 2013
Politics News

Key UK mortgage rate passes 4% for the first time since 2013

August 23, 2022
6m disabled people in UK to get £150 cost of living payment in September
Politics News

6m disabled people in UK to get £150 cost of living payment in September

August 23, 2022
Next Post
UK launches post-Brexit trade scheme for 65 developing countries extending tariff cuts

UK launches post-Brexit trade scheme for 65 developing countries extending tariff cuts

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Email Address *
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!
 

Recommended

Peso climbs vs dollar on Fed rate bets

Peso climbs vs dollar on Fed rate bets

July 19, 2022
The P95-billion budget

The P95-billion budget

August 22, 2022
Philippine stocks rebound on bargain hunting

Philippine stocks rebound on bargain hunting

June 7, 2022
China warns of ‘forceful measures’ if US House Speaker Pelosi visits Taiwan

China warns of ‘forceful measures’ if US House Speaker Pelosi visits Taiwan

July 20, 2022
Post-Mandanas devolution  under review for compliance  with Local Government Code

Post-Mandanas devolution under review for compliance with Local Government Code

August 16, 2022
US SEC charges Forsage operators after PHL exposé

US SEC charges Forsage operators after PHL exposé

August 3, 2022
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting

Copyright © 2022 SmarterNewsNow.
All Rights Reserved.

Disclaimer: SmarterNewsNow.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

No Result
View All Result
  • About Us
  • Contact Us
  • Email Whitelisting
  • Home
  • Privacy Policy
  • Terms & Conditions
  • Thank You

Copyright © 2020 SmarterNewsNow. All Rights Reserved.