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UKHospitality has urged the new prime minister to act “quickly and decisively” in order to save the sector in the face of increasing costs due to the energy crisis.
The news comes as Liz Truss was confirmed as the new prime minister after beating former chancellor Rishi Sunak in the Conservative Leadership race to replace Boris Johnson.
Kate Nicholls, CEO of UKHospitality, said: “Congratulations to Liz Truss on her election as the new leader of the Conservative Party and our prime minister. We very much look forward to working closely with her and the new Cabinet in the coming weeks, as we strive to save the hospitality industry, which is experiencing crushing cost rises.
“The new Government must act quickly and decisively to address the soaring energy bills that are facing consumers and businesses.”
She added: “With the right package of support – including a reduction in the headline rate of VAT for the sector to 12.5%, a business rates holiday, the deferral of all environmental levies, the reinstatement of a HMRC Time to Pay scheme and the reintroduction of a trade credit insurance scheme for energy – the sector will be well placed to aid growth through generating jobs and local investment.
“Pre-pandemic, our industry spent £10bn a year in high-street regeneration and employed 3.2m people but with energy bills for hospitality businesses rising 300% on average – and as high as 750% in some cases – we desperately need a package of support put in place if we are to be able to play our part in the UK’s economic recovery and growth.”
