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Calls for UK govt to rethink energy support

The night-time economy adviser for Greater Manchester, Sacha Lord, has urged the new culture secretary to rethink business energy support to prevent “swathes” of venues from closing.

Sacha Lord energy support
Lord is the Night Time Economy Adviser for Greater Manchester

Conservative member of parliament (MP) Lucy Frazer was named as the new culture secretary during prime minister Rishi Sunak’s mini cabinet reshuffle yesterday (7 February). Frazer will replace Michelle Donelan in the role.

Lord said: “I encourage the new culture secretary to work urgently with the chancellor ahead of his spring budget next month in order to deliver renewed opportunity and hope to the hundreds of thousands of hard working people our sector employs.

“I also urge the secretary to call on the chancellor to rethink business energy support, which will fall away substantially from next month leading to the inevitable closure of swathes of cultural and leisure venues across the UK.

“The sector has experienced the toughest years in its history and with this move I hope the support it is given starts to reflect its importance to economic growth.”

It was recently revealed by the Night Time Industries Association (NTIA) that more than two-fifths of night-time businesses are losing money or barely breaking even as the UK’s new Energy Relief Scheme will have ‘no impact’.

The NTIA carried out a poll of 306 of its members, which looked at the impact of the new Energy Relief Scheme in the UK, due to start in April.

The UK government is also facing demands for an urgent inquiry into evidence that energy support is being withheld from hospitality businesses, as the trade warns this is causing ‘increased financial burden’.

The UK’s night-time economy has “shed 700,000 jobs in the last six years”, as nightclubs and bars warn they face closure from the surge in energy bills and squeeze on consumer spending, said the night-time economy adviser.

The NTIA added that employment in cultural and leisure activities and sectors that support the industry has shrunk by almost a 10th since peaking in 2018.

UK Hospitality recently revealed that more than a third of UK hospitality businesses could fold in early 2023 due to the cost of running a business in the current climate.

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