New prime minister Liz Truss set out the long-awaited measures on Thursday (8 September), which will see bills – from October – capped at £2,500 until 2024. Businesses, though, will only receive support for six months, subject to a review after three months.
Truss said support could be extended for "vulnerable industries"; Abta chief executive Mark Tanzer said it was now vital the government provided more detail on the review process with travel businesses heading into low season, many of whom he said were "particularly vulnerable".
"While it is good the government is introducing a cap on business energy bills, which we and other industry bodies have been calling for, it is disappointing the measures announced today only last for six months initially," said Tanzer. "We need to understand further how the review process will work for deciding which companies will be considered for further support after this.
"Travel businesses should be eligible; the next six months represent the low season for travel, and most travel companies are still recovering from the impact the of Covid restrictions, with many having loans due for repayment."
Tanzer said the government must look at other ways to support businesses during what is expected to be a lean winter, one that comes off the back of the pandemic.
"With a fiscal statement expected later this month and an autumn budget still to come, government must look at the other ways it can support businesses with rising costs including extending business rates support and working with banks to provide respite with the repayment of business loans taken on during the Covid crisis," said Tanzer.
"Our members are heading into the cost of living crisis after the worst two years in the industry’s history, with small- to medium-sized businesses particularly vulnerable. We’ll be continuing to lobby government on the need to act to support travel businesses during the cost of living crisis."
