Hospitality Ulster and Retail NI reacts to energy support measures by UK Government

The chief executives of Hospitality Ulster and Retail NI have called for ‘urgent clarity’ on how the Energy Bill Relief Scheme for businesses will operate in Northern Ireland.

The critisim comes after Business Secretary Jacob Rees-Mogg confirmed the Government’s energy support scheme would offer households in Northern Ireland the same level of gas and electricity bill support as an equivalent scheme in Great Britain.

The announcement follows the launch of the Energy Price Guarantee for households in the rest of the UK, under which a typical household will pay on average £2,500 a year on their energy bill for the next two years from October 1.

Households in Northern Ireland will also receive a £400 discount on bills through the Northern Ireland Energy Bills Support Scheme.

The Government has also announced plans to introduce a cap on wholesale energy bills for businesses in the rest of the UK, and said a parallel scheme will be established in Northern Ireland. The plan will see energy bills for businesses cut by around half their expected level this winter.

But a hospitality chief said businesses in Northern Ireland need “urgent clarity” on how the local business relief scheme will operate.

Colin Neill, chief executive of Hospitality Ulster, said: “It is simply unacceptable that Northern Ireland businesses do not have any detail on how support will be provided.

“We need urgent clarity on how these measures will be carried forward. Thousands of businesses are on the brink with many concerned how they will get through the winter.

“The cost of energy crisis is a real threat to people’s jobs, livelihoods and businesses. In what should be the beginning of our busiest period, hospitality is instead looking at how to keep the lights on.

“It is totally unsustainable for business to continue to pay these crippling energy bills as well as contending with a labour shortage and spiralling cost of other overheads including food and ingredients.

“Further support measures including slashing the VAT rate and a business rates holiday are also urgently required to tackle the cost of doing business crisis. We cannot wait any longer for government intervention.

“Ahead of the unveiling of the ‘Growth Plan’ by the Chancellor on Friday, direct intervention and support for business in Northern Ireland must be announced and implemented. The hospitality industry will have a third consecutive dark winter without it.

“We have no choice but to wait for much needed clarity which will hopefully provide some short-term relief to the hospitality sector in the coming months.

“We need to allow our businesses to plan ahead and build back to what once was one of Northern Ireland’s leading economic drivers. We are now in a critical situation and cannot wait for long.”

Retail NI chief executive Glyn Roberts, agreed: “Given the crippling financial difficulties that local independent retailers and other small businesses are experiencing, it is hugely disappointing that more clarity was not provided on the energy cap.

“We have been given no timelines on how the energy cap will apply to Northern Ireland business owners. This is unacceptable and our members deserve better.

“This is not just a cost of doing business crisis - it has now an emergency. Government needs to ensure that a clear date is provided for the introduction of the Energy Bill Cap, a business rates holiday and VAT reductions to support local small businesses.”