Reacting to the Prime Minister’s statement on the energy crisis, Retail NI Chief Executive Glyn Roberts said: “The six-month cap on energy costs for businesses is a positive first step in providing support for our members and it is welcome that the Prime Minister has given a commitment that this will equally apply to Northern Ireland.

“However, Government needs to go much further to provide additional support to small businesses struggling with this energy crisis. This should include Business Rates relief, VAT reductions and the reversal of the National Insurance hike.”

Unveiling the two-year Energy Price Guarantee for householders, Liz Truss said this would cap energy bills at £2,500 a year.

She also promised “equivalent support” for six months for businesses, although exact details have yet to be announced.  More support for businesses could be available for vulnerable businesses after that period.

The National President of the Federation of Independent Retailers (the Fed), Jason Birks, said: “Although the devil is in the detail, today’s news of support for businesses should give struggling retailers some comfort and relief.

“Six months is a starting point, but the Fed and its members need longer term assurances that support will be ongoing.

“However, we look forward to hearing more about the financial support that will be available and assisting members in making sure they receive the help and support they need.”

Last week, Mr Birks warned that without financial assistance, the future for independent retailers looked bleak.

“When soaring energy bills are added to falling margins and rising payroll costs, it may only be a matter of time before communities lose access to the groceries and services that local stores provide – but more importantly they will also lose a heart,” he said.

“To survive this crisis, we need more financial support from the government and for the energy price cap to be applied to businesses too, even though this may be too little, too late.”

The Fed is also in regular dialogue with the Department for Business, Energy and Industrial Strategy on issues affecting members, with the most recent meeting taking place this week.

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With rising energy costs impacting businesses, the Northern Ireland Food and Drink Association has highlighted that, while firms have tried to absorb as much inflation as possible, consumers could see higher prices for food and reduced ranges.

Michael Bell, Executive Director, Northern Ireland Food and Drink Association (NIFDA) said: “The war in Ukraine has had a ripple effect on the food system globally, as costs for fuel, feed and fertiliser continue to rise. NIFDA members have been striving to keep a lid on prices, trying to absorb as much of this inflation as possible, but, with costs continuing to rise across the food supply chain, there is a real possibility of price increases and reduced availability of certain ranges.

“Energy costs are severely impacting our NIFDA members now and immediate assistance is needed to help food manufacturers through the winter. It is vital that the government has plans in place to ensure disruption is minimised for food manufacturers, and to support companies with spiralling energy costs. If action is not taken urgently, there will be serious concerns about the sustainability and viability of businesses here.

“Given the fact that the majority of food produced in Northern Ireland is consumed in Great Britain, this is something which requires national attention. It is vital that our industry remains equipped to keep feeding the nation. The government needs a strong focus on food to see how the industry can be supported and keep prices under control ahead of a difficult winter.

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After winning the Tory leadership contest, defeating former chancellor Rishi Sunak by 81,326 votes to 60,399, Liz Truss will replace Boris Johnson as prime minister.

Ms Truss said that as premier she will lead the Conservative Party to a “great victory” at the 2024 general election as she stressed her priority in the coming years will be delivering on policy pledges.

Delivering her victory speech at the Queen Elizabeth II Centre in central London, Ms Truss said: “I know that we will deliver, we will deliver, we will deliver. And we will deliver a great victory for the Conservative Party in 2024.”

Reacting to the election of Liz Truss as Leader of the Conservative Party, Retail NI Chief Executive Glyn Roberts said: “Liz Truss has a huge in tray of challenges, not least bringing forward a package of support for small businesses and independent retailers that are struggling with crippling increases in their energy bills.

“She must hit the ground running with a big bold plan for our economy and follow through on her promise to reverse the National Insurance hike.

“The cost of doing business crisis is threatening jobs and businesses across every sector of our economy. Businesses are facing a perfect storm of cost increases including energy, National Insurance, inflation, Covid recovery, and rising interest rates.

“Make no mistake, this is about saving jobs and businesses over the next months.”

Congratulating the new Prime Minister, Tony Danker, CBI Director-General, said:  “This is an extraordinarily difficult time to be leading the country, and she has businesses’ full support in meeting shared challenges together, head on.

“Most immediately, support for struggling households and firms in jeopardy is top of the in-tray. This may not be the pandemic, but the exceptional circumstances we now face mean Government must play a central role in supporting our economy.

“And if we’re serious about getting the UK growing again, ensuring any slowdown is short and shallow, we need a serious plan for growth. It needs to be bold, unconventional and rooted in the very real opportunities that still exist for the UK to thrive.”

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As a knock-on effect from the cost-of-living emergency, businesses are seeing a fall in trade and customer levels. Coupled with raising inflation, a workforce crisis across the sectors, and remaining Covid pressures, many within hospitality and retail are struggling to remain viable with businesses shutting up shop every day.

Actions within the plan include:

• VAT to be reduced to 17%.
• Reinstate the reduced Tourism / Hospitality VAT rate to support businesses that rely on household discretionary disposable income and tourism spend.
• Restoration of the Business Rates Holiday which concluded in July 2022, running until April 2023.
• A UK wide reform of the business rates system to ensure online and out of town businesses are paying the same rate as high street businesses.
• Support from the UK Government for the devolved nations to reduce business rates by providing increased financial support through the block grants.
• The removal of VAT from energy bills to reduce energy costs.
• The Northern Ireland Executive to establish a Rural Town and Village Infrastructure Investment Fund to ensure our small and mid-sized towns and villages are supported during this economic crisis.

The action plan has been co-designed by Retail NI, Hospitality Ulster, Londonderry Chamber of Commerce, Bangor Chamber of Commerce, Ballycastle Chamber of Commerce, Ballymena Chamber of Commerce, Banbridge Chamber of Commerce, Belfast Chamber of Commerce, Causeway Chamber of Commerce, Lisburn Chamber of Commerce, NI Takeaway Association, Newry Chamber of Commerce, Newtownards Chamber of Trade, Omagh Chamber of Commerce, and Portadown Chamber of Commerce.

In a joint statement, the leaders of the 15 business organisations said: “We are at a critical juncture as a perfect storm of factors is causing devastation for the retail and hospitality sectors and could see thousands of businesses threatened over the next months if no action is taken.

“Out of control energy bill increases, labour shortages, inflation, National Insurance increases, and sky-high business rates – the highest in the UK – are risking the business climate of Northern Ireland. Fears that many will simply go under in the next months without government assistance are keenly felt and we cannot continue on this path of destruction any longer.

“We are pushing customers away due to having to raise prices to keep pace with these rising costs, which is therefore having a detrimental impact on trade and consumer confidence.

“Intervention is required by the UK Government, as well as the limited powers of NI Executive Ministers, to stave off the worst of this crisis on business owners and provide tangible support and resources that could keep trade viable.

“Our plan has achievable, tangible solutions that would support business from day one. Actions including a reduction in the VAT rate to 17% to encourage more households to spend on the high street; increased financial assistance through the block grant to alleviate the cost of business rates; and the implementation of the NI High Street Taskforce Report will help bolster business back to viable trading levels.

“We call on both Governments to consider our proposals and engage with the business community on how best to implement urgent actions that can alleviate these crippling pressures. It will support both businesses and consumers in this most pressing of times.”

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