HUNDREDS of York hospitality businesses will be on the edge of collapse when the current energy support scheme ends, say the city’s Liberal Democrats.
The party, which runs the city council in coalition with the Green Party, has issued the warning, saying some 365 businesses face a huge £1.6 million increase in their energy costs.
York hospitality groups have welcomed their calls for extra government support, which follows similar pleas to government last summer.
Lib-Dem figures show that the average bill increase per business is likely to be £4,563 once the energy cap is withdrawn in April. This is because proposed support will drop by 90 per cent.
Cllr Ashley Mason, executive member for economy and strategic planning, said: “Countless businesses across York are once again facing a cliff edge in support this spring. The current support scheme provides certainty for business owners over their rates and has made a material difference to the survival of many local businesses. The replacement scheme will do neither.”
Cllr Mason (Lib-Dem: Dringhouses & Woodthorpe) says he fears many businesses will be “on the precipice of collapse come April” unless targeted support is put in place.
He said the city council would “do as much as we can” to help firms, but it cannot plug the support needed from government, which it will continue to campaign for.
Philip Bolson, chair of the York & North Yorkshire Chamber’s Hospitality Forum, welcomed the support.
He said: “The Government seriously need to get a grip on the cost of energy. The cap was barely a sticking plaster, and a more urgent, robust intervention is needed.”
Mr Bolson, who runs the Mr B Hospitality consultancy, says the government must review taxes and duties on hospitality and cut business rates.
He said: “The impact of inaction is significant. Not only on the businesses but those that service and supply them. For York and North Yorkshire where there is a greater amount of hospitality businesses the impact is going to be felt even more keenly.”
Adam Wardale, chair of Hospitality Association York (HAY), agreed it was ‘good’ to see such support for the proposals that UK Hospitality, a national body, is seeking.
York Central MP Rachael Maskell says she has been grilling the energy minister about the support she describes as ‘thin gruel’.
The Labour MP said many businesses are cutting their opening hours or closing entirely.
If government doesn’t reduce the energy price cap in April, many businesses and others would be unable to pay their bills.
Government must introduce a comprehensive package to support business and the community and support Labour’s “energy sprint” to cheap renewable energy and insulation to further cut costs.
Ms Maskell added: “Government are sleepwalking through this crisis, offering far too little, far too late.”
York Outer Conservative MP Julian Sturdy was approached for comment.
