PM announces price cap on energy bills that could save pubs

UK Prime Minister Liz Truss will introduce a six-month price cap on business energy bills in a move that could save pub businesses from mass closure.

In a statement to MPs Truss revealed the aim to introduce the six-month cap on business energy bills, stating that it will be reviewed after three months to assist in the recovery of British businesses. The cap on business energy bills could, after its tenure, then reportedly become extended for vulnerable sectors later down the line.

Responding to the Prime Minister’s announcement on energy bills for businesses, Emma McClarkin chief executive of the British Beer and Pub Association (BBPA) said: “By committing to an energy price cap for businesses today the PM has shown she understands just how critical the energy crisis has become for our breweries and pubs, and just how important pubs and brewers are to their communities. This intervention will help thousands of business owners to breathe a little easier over energy bills in the coming winter months.”

UK Hospitality chief executive Kate Nicholls stated that this is a “positive plan to start tackling cost of doing business and energy crisis” and noted that it was “really welcome recognition of [the] need for immediate action on commercial energy bills” but highlighted that further support is needed for “industries like hospitality most at risk”.

Nicholls reiterated that what these businesses really need is “VAT and rate relief” as well as a “quick and effective cash injection”.

McClarkin added: “This announcement will avert the immediate threat of the energy crisis for businesses, but we need clarity and assurance for the long-term so our brewers and pubs can plan effectively and thrive at their heart of their communities long into the future. The cost of doing business is still a very real threat for many but we are encouraged by the direction this government is going in. Now we need to hear more on business rates, VAT and keeping beer duty low.”