Hospitality faces 'perfect storm' in 2023 as ministers plan to halve support for energy bills
UK Hospitality chief executive Kate Nicholls says businesses are facing rising energy bills, record levels of inflation , lower consumer confidence and a £1.5bn drop since December rail strikes
Ministers have warned that the hospitality sector faces a "perfect storm" (
Image: Getty Images)
Ministers have been warned that hotel businesses will face a 'perfect storm' in the first months of 2023 as the government plans to halve support for businesses' energy bills.
The chief executive of UK Hospitality also claimed the railway strikes had cost the industry around £1.5bn in December alone and were 'bigger' than expected.
As the New Year approaches and a generally calmer time for hospitality, Kate Nicholls stressed that the first three months of the New Year will be "very difficult".
Speaking on BBC Radio 4's Today programme, she said 2,500 establishments had closed in the last months of this year as she expected the trend to continue "in the first quarter due to the cost high business".
The industry boss said soaring energy bills, inflation and a cost of living crisis that has hit consumer confidence have created a "perfect storm" for many businesses.
Picture:
UK PARLIAMENT/AFP via Getty Imag)Ms Nicholls cautioned: "We will undoubtedly see more business bankruptcies in the first quarter and we very much hope that we will see a government announcement on energy pricing and energy support that will maintain some viability for businesses going through and those losses won't be as significant."
His plea to the government comes amid reports that financial support for businesses could be cut in half by the time the current package expires in March.
According to , Chancellor Jeremy Hunt will announce a 12-month extension to the wholesale energy price cap - but with reduced support.
This suggests the new 12-month program could cost around £20bn, up from £40bn...
UK Hospitality chief executive Kate Nicholls says businesses are facing rising energy bills, record levels of inflation , lower consumer confidence and a £1.5bn drop since December rail strikes
Ministers have warned that the hospitality sector faces a "perfect storm" (
Image: Getty Images)
Ministers have been warned that hotel businesses will face a 'perfect storm' in the first months of 2023 as the government plans to halve support for businesses' energy bills.
The chief executive of UK Hospitality also claimed the railway strikes had cost the industry around £1.5bn in December alone and were 'bigger' than expected.
As the New Year approaches and a generally calmer time for hospitality, Kate Nicholls stressed that the first three months of the New Year will be "very difficult".
Speaking on BBC Radio 4's Today programme, she said 2,500 establishments had closed in the last months of this year as she expected the trend to continue "in the first quarter due to the cost high business".
The industry boss said soaring energy bills, inflation and a cost of living crisis that has hit consumer confidence have created a "perfect storm" for many businesses.
Picture:
UK PARLIAMENT/AFP via Getty Imag)Ms Nicholls cautioned: "We will undoubtedly see more business bankruptcies in the first quarter and we very much hope that we will see a government announcement on energy pricing and energy support that will maintain some viability for businesses going through and those losses won't be as significant."
His plea to the government comes amid reports that financial support for businesses could be cut in half by the time the current package expires in March.
According to , Chancellor Jeremy Hunt will announce a 12-month extension to the wholesale energy price cap - but with reduced support.
This suggests the new 12-month program could cost around £20bn, up from £40bn...
What's Your Reaction?
![Three of ID's top PR executives quit ad firm Powerhouse [EXCLUSIVE]](https://variety.com/wp-content/uploads/2023/02/ID-PR-Logo.jpg?#){kind=logo}
