Press Statement: Scottish Tourism Alliance responds to Prime Minister’s announcement today on measures to address energy costs

The Scottish Tourism Alliance has responded to today’s announcement by the Prime Minister on measures to address energy costs. 

Marc Crothall, Chief Executive of the Scottish Tourism Alliance said:

“The measures announced by the Prime Minister will go some way to alleviating the cost-of-living crisis for many consumers, however it doesn’t go far enough; the proposed price cap of £2500 is still an increase of 54% to households since Spring.  Given the continued rise in inflation, consumers will continue to deal with financial insecurity and spending will decline, particularly within the tourism and hospitality sectors.

We are encouraged by the Prime Minister’s commitment to providing “ongoing, focussed support’ for vulnerable industries, which as confirmed in her statement, includes hospitality businesses.  This may not however include many other sectors within the tourism industry and the vast supply chain which are also being hit hard by the challenges relating to the cost of living and cost of doing business crisis.

There are many mutually reliant sectors within our tourism industry and all must receive support. We would also hope that support will not exclude businesses of a particular size.

There are multiple factors relating to this crisis which must be addressed and a number of fiscal levers which if applied immediately, would significantly ease the burden for businesses in our sector; VAT reduction on supplies relating to hospitality, accommodation and attractions, deferral of the Coronavirus Business Interruption Loan Scheme repayments and the Bounce Back loan repayments, urgent support for businesses struggling to secure new energy contracts and an immediate review of immigration rules to address the labour workforce shortages within the sector.

I look forward to the announcement of the detail of this initial six-month support scheme for businesses.”