Energy crisis: 'Our hospitality family needs to stand together and demand change'

26 August 2022 by
Energy crisis: 'Our hospitality family needs to stand together and demand change'

The Institute of Hospitality (IoH) has written to business secretary Kwasi Kwarteng to ask for support around soaring energy costs to avoid venue closures and job losses.

Robert Richardson, chief executive officer of the IoH, wrote the letter on behalf of over 14,000 members, which include sole trading businesses, SMEs and FTSE 100 companies.

They have asked for financial support to alleviate the crisis ahead of the winter months.

Last week, some hotels told The Caterer that they would "consider closing for winter" if energy bills continue to rise.

Richardson said: "The pressure on our industry is increasing daily. We already have the challenges of a skills shortage, supply shortages, and cost of living rises, all of which have a constant impact on our industry's viability.

"Our members are gravely concerned that a current lack of planned support measures to support their businesses through these challenging times will cause business closures, loss of jobs and livelihoods."

Kellie Rixon, chair of the IoH supervisory board, added: "It is times like these that our hospitality family needs to stand together and demand change. We support our membership in speaking out to help our businesses and people survive this next crisis."

Peter Hales, member of the IoH college of fellows, said: "The pandemic showed what a critical role the hospitality sector plays in the UK's economic health, yet our industry is now facing an unprecedented set of circumstances and I see no plan or support from the UK Government yet.

"A reduction in business rates and the reintroduction of reduced VAT would be a start. We need to see some action and we need to see it now."

It comes after the five organisations representing the UK hospitality industry, including UKHospitality and Music Venue Trust, called on the government to take urgent action to counter rising energy costs in a joint letter.

Several business groups have urged ministers to introduce measures such as Covid-style emergency government grants to alleviate the crisis.

Image: Take Photo / Shutterstock

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