Worse than the Pandemic: Businesses count down the days as imminent collapse of the High Street may become a reality.
08/09/2022
Following rumours of an energy prize freeze, over 150,000 businesses from across the UK are urging Government to act on spiralling energy costs which are proving more detrimental than the pandemic.
The #BusinessSOS campaign warns of mass closure and redundancies if immediate and effective action isn’t taken – the true situation that Britain faces today.
The newly formed #BusinessSOS campaign, founded by organisations representing over 150,000 retail, leisure, hospitality and tourism businesses warns harm caused by the spiralling energy crisis is superseding the pandemic with the potential to cause irreversible damage to UK high streets and the economy.
The #BusinessSOS campaign believes mass closures and redundancies are inevitable if Government does not swiftly implement measures that alleviate the critical pressures that businesses, like households, have been facing since April 2022.
#BusinessSOS three-point-plan to support ailing businesses:
Reduce VAT
Business Rates Relief
Energy Rate Relief
Steve Bluff, Head of Redcliffe & Temple BID commented;
“The cost of living and inflation is having a significant impact on businesses and how they operate, we are hearing stories from city centre businesses of bills going up by over 400% which clearly is not sustainable. Businesses have already had to weather challenges associated with Brexit and Covid, and now face further uncertainty and insecurity, just as they were starting on the road to recovery.
“Our recent city centre spend data* showed that the first half of 2022 saw positive signs with spend increasing across nearly all sectors, however, Q2 of this year still had a shortfall of over £50million in spend compared to the same period of 2019 pre-covid. We need the government to support these businesses now, to have any hope in maintaining the progress made so far this year and help businesses continue in such turbulent times.”
VICKY LEE, HEAD OF BRISTOL CITY CENTRE BID
“A key part of our role as a BID is to represent businesses so that their voice is heard, and our support during this current economic landscape is focused on lobbying central government to implement measures that will keep local businesses afloat through this financial crisis.
“By joining with BIDs and business representatives in the UK from across all sectors, we have a collective voice that urges our new government to act now. Reductions in VAT, business rates and energy rate relief are the most significant interventions the government can provide that will dramatically change the outlook for local businesses and help them weather the storm we face in the coming months.”
“The concerns and impact of the cost-of-living crisis are growing daily. A third of retailers in the Broadmead BID area are independents, equating to over 110 businesses, and they are worried about the future of their businesses with the continued rising costs.
“It isn’t just the costs directly relating to business operations, it is the impact they will also have on consumers across the Christmas period and the winter months. Support and action from the government at this time is crucial if high street businesses are going to survive.”
Kate Nicholls, CEO of UKHospitality, said,
“The hospitality sector is crucial to delivering the business-led growth the new Government is striving for, but we are facing an existential crisis due to soaring energy bills. We’re encouraged by the new Prime Minister’s commitment to tackling energy prices, but we need to see urgent, comprehensive action. As well as a price freeze, we need to see a cut to VAT and a business rates holiday if businesses in the sector are to have any hope of making it through the winter.”
Ojay McDonald, CEO of Association of Town and City Management said,
“Right now, businesses are already deciding to scale back or shut up shop for good. The knock-on impact on employment is unimaginably bad. We need decisive action from the government now to save the high street.
Let’s not shy away from how comprehensive this support needs to be. Energy prices have been unsustainable for months. We are at the stage where a price freeze is inadequate. Discounts on the cost of energy are vital. We also need to halt the decline of consumer confidence to keep businesses trading. That’s why this three-point plan on energy, VAT and businesses rates as a combination is the right route to take.”
Emma McClarkin, Chief Executive of the British Beer and Pub Association, said:
“The pub and brewing sector makes a huge contribution to our economy in high streets and local communities throughout the country, yet it still remains in a precarious position after the pandemic. Immediate action on energy is critical, but investment in our sector for the long-term is also essential. As the PM works towards a fiscal statement and full budget we hope she will seriously consider a cut to business rates and VAT so Britain’s pubs and brewers can get back on their feet fully and thrive in the communities they proudly serve.”
