DOUBT has been expressed over whether or not the UK Government’s new Energy Bill Relief Scheme will likely be sufficient to make sure companies will survive this winter.
Even with the introduced restricted tax cuts on National Insurance and company tax and responsibility, the scheme is “unlikely” to supply the help wanted to remain afloat, in line with Night Time Industries Association Scotland.
A spokesperson mentioned the affiliation was “extremely disappointed” with the announcement from Chancellor Kwasi Kwarteng.
“It will be seen as a missed opportunity to support businesses that have been hardest hit during this crisis, causing considerable anxiety, anger and frustration across the sector as once again they feel that many will have been left out in the cold,” she mentioned.
“We have been extremely clear with the Government that the Energy Bill Relief Scheme – even with the announcement of the limited tax cuts on National Insurance, corporation tax and duty – is unlikely to be enough to ensure businesses have the financial headroom to survive the winter, especially with the announcement of the rise in interest rates from the Bank of England.”
The affiliation has referred to as on the Chancellor and Government to rethink the measures and re-evaluate the inclusion of normal enterprise charges relief and the discount of VAT.
The artistic sector has additionally criticised the shortage of long-term safety offered by the brand new measures. Bectu, the artistic employees’ union, mentioned there was fear over what would occur in March when the scheme expires.
“The creative industries urgently need a targeted, flexible, sustained support plan to safeguard the sector and its jobs beyond the next few months,” mentioned Bectu head Philippa Childs.
At Pitlochry Festival Theatre, head of operations Mike Ives mentioned the Energy Bill Relief Scheme and the capping of energy prices for the following six months would assist the theatre by means of the winter, however there have been long-term challenges as energy prices had already elevated by 101%.
“The theatre is being advised not to enter into contracts for longer than 12 months due to the volatile nature of the energy industry, and therefore it would have helped if the energy cap had been for twelve months rather than six,” he mentioned.
Liam Sinclair, govt director and joint CEO of Dundee Rep and Scottish Dance Theatre, agreed.
“Like all enterprise, we face vital pressures arising from the inflationary challenges throughout the economy proper now,” he mentioned.
“These, after all embody energy, but additionally materials prices, supply-chain, recruitment challenges and expertise shortages and more and more, an enormous fear concerning the affect on disposable earnings which theatres closely depend on by the use of ticket gross sales.
“As the performing arts industry still suffers from the effects of the global pandemic and lockdown – not least as theatres were the first to close and last to reopen – we call on the decision-makers to think beyond the next six months and implement long-term solutions now to help us face the challenges ahead.”