Chancellor accused of failing to support businesses in £15b cost of living package

The chancellor has been accused of failing to support businesses after today’s announcement of a £15b package to tackle the cost-of-living crisis focused solely on consumer bills.

Rishi Sunak said that every household would receive an energy bill discount of £400, with the poorest households receiving an additional payment of £650 to help with rising costs. However, there was no support announced for businesses.

Operators have told The Caterer they are being forced to cut trading hours and raise prices in the face of spiralling energy bills, with one in ten seeing increases of more than 200%.

The British Beer & Pub Association (BBPA) has estimated increased energy prices will add costs of £800m to the sector this year.

Colin Wilkinson, managing director of the Scottish Licensed Trade Association, said today’s package “does nothing for hard-pressed businesses."

He added: “Our hope today was that the Chancellor would recognise these issues and announce some measures to help struggling businesses and stave off the very real threat of ‘tumbleweed’ city and town centres.”

Meanwhile, Michael Kill, CEO of the Night Time Industries Association, said: “We welcome this gesture of support for consumers although somewhat light touch, given the gravity of the current pressures.

“But feel hugely disappointed and frustrated that the chancellor and the government has not taken the opportunity to fully support businesses within this announcement at such a critical time. Time is running out for businesses, as costs ramp up.”

UKHospitality chief executive Kate Nicholls welcomed the package, which she said would “hopefully shore up some consumer confidence” but agreed that a “commensurate focus to reduce the costs of doing businesses” was needed.

Hospitality and food industry leaders have been lobbying for a cut in VAT to help businesses survive spiralling costs after Consumer Prices Index (CPI) inflation jumped to a 40-year high of 9% in the 12 months to April 2022, up from 7% in March.