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The Night Time Economy Adviser for Greater Manchester, Sacha Lord, has written to Chancellor Nadhim Zahawi, calling for Parliament to be recalled to address the impact of inflation on the hospitality sector.
Lord (pictured right, alongside Greater Manchester Mayor Andy Burnham) is warning that the combined impact of food price rises, supply chain challenges and rising energy prices are creating a ‘perfect storm’ of conditions for the hospitality sector that put it in a more precarious economic condition than even during the peak of the Covid-19 pandemic. He reports that some sites in Greater Manchester are seeing energy bills triple, while at the same time, demand is falling as consumers look to cut back on spending amid the cost-of-living crisis. Debts racked up during the pandemic when trading was restricted are also compounding the financial woes of the sector.
The night time economy employs 10% of the total workforce in the UK, and as such, Sacha Lord is calling for the Chancellor to take urgent action to shore up the sector’s prospects. He is calling for a temporary VAT reduction on business energy bills to the same 5% level paid on domestic energy – business energy bills are not protected by Ofgem’s price cap that protects consumer bills.
The Greater Manchester Night Time Economy Adviser is also calling for Parliament (currently on summer recess) to be recalled so that action on challenges facing the hospitality sector can be properly debated and addressed in Westminster. Sacha Lord said:
“I have contacted the Chancellor, Nadhim Zahawi, to urge him and the Government to return to Parliament. Urgent meetings with energy providers and leaders from across the industry are needed to discuss pragmatic solutions and reduce the financial burdens that landlords are facing.
“We must keep this sector afloat before it is too late, and to save the livelihoods of the hundreds of thousands of staff that the sector employs.”