Night time economy czar demands recall of Parliament to tackle ‘perfect storm’
Greater Manchester night time economy advisor, Sacha Lord, has demanded the recall of Parliament to address rising costs for the hospitality sector which he said could lead to “unemployment on an unimaginable scale”.
He has contacted Chancellor, Nadhim Zahawi, urging him to step in as rising energy costs are tripling for some businesses, making things worse for them than during the pandemic, he said.
He said: “This is a crisis and we need immediate intervention. We need somebody to get a grip and we need strong leadership to get us through this.”
His warning comes as the Bank of England warns inflation – currently 9.4% – could peak at more than 13% over the next year, with little respite in sight until before 2024.
Lord reports energy bills in some hospitality venues have tripled, with many expecting extra costs of between £15,000 to £20,000 by the end of the year.
One Manchester restaurant, WOOD Manchester, managed by former Masterchef winner, Simon Wood, has reported an increase from £3,000 per month to nearly £9,000 per month for utilities, despite opening only five days per week.
Sacha Lord warns: “The hospitality sector is one of the most integral parts of the UK economy, and one which is now in an extremely perilous position, more so than during the COVID pandemic.”
“Historical debt burdens racked up over the past two years, combined with the unrelenting economic pressures, have created a perfect storm which is tearing through the heart of the sector. Trading is now unviable for many and I believe we will see closures at an unprecedented level over the 12 months leading to unemployment on an unimaginable scale.”
He added: “The speed at which the economic turmoil has devastated businesses in the sector is frightening and I am being contacted every day from landlords who are unable to continue to trade due to financial pressures.”
Lord is calling for the Government to implement a temporary reduction in VAT on business energy bills from 20% to five per cent.
He 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.”
Appointed by Andy Burnham, Mayor of Greater Manchester, in 2018, Sacha Lord is the region’s night time economy adviser, one of only four in the UK.
As the fifth biggest industry in the UK, the night time economy employs just under 10% of the total UK workforce.
