The Meetings Industry Association is calling for urgent government intervention from newly-installed PM Liz Truss to ensure small businesses - and the sector's supply chain - survive.
Kerrin MacPhie, chief executive of the Meetings
Industry Association, says that sharply rising energy prices will have a dramatic effect on the sector and need to be addressed immediately.
"With businesses being charged 20 per cent VAT and no cap on energy prices, this will have a dramatic impact on our industry and needs to be addressed immediately," she said.
"Some small businesses are seeing increases of 500 per cent on existing energy bills of £140k, which is simply not sustainable. Many are thriving post-pandemic but with increased costs their cashflow is greatly affected so they cannot deliver on their order book.
"Additionally, with domestic energy bills being charged at 5 per cent VAT - many meetings industry businesses have remodelled their approach working three days in the office and two remotely. Some have scrapped the office entirely which impacts towns and cities that benefit from offices full of people, supporting the local economy.
"Government intervention is urgently required to ensure small businesses survive. Otherwise, valuable events could be compromised due to a seriously depleted supply chain."
MacPhie also called on the new prime minister to recognise the business meetings and events industry and the value it brings to
the UK economy.
"Britain’s events industry is large and complex, she said. "We
need government to recognise our industry and how it can support the UK's
objectives to be a world leader."
MacPhie outlined other ways in which Truss could assist the events sector, by addressing issues such as the visa process and Brexit.
"The current visa process is inadequate and
ineffective," she said. "We’re calling for a solution that allows businesses to sponsor
international staff to combat our already diminished workforce, brought about
by the government closing down our sector during the pandemic.
"We support, for example, the petition started by
Thiago Luz Togni (general manager of Temper Shoreditch) that has gained over
10,000 signatures, which has called for the creation of a seasonal visa similar
to the one adopted for horticulture workers. It would allow EU nationals to
come to the UK to work in hospitality for up to two years. Chefs are eligible
for a skilled worker visa due to changes made by the UK government. We need
more changes like this.
"A new Brexit delivery department tasked with
reviewing all of the remaining 2,400 EU laws on our statute book is welcomed.
There are many vaguely answered questions regarding business meetings and
events, and it is vital that we receive clarity on these so that international business
events are welcomed to the UK."
