The Music Venue Trust has reacted to the government’s announcement on capping energy prices.

The organisation has described the threat of soaring energy costs for the grassroots sector as an “existential challenge”.

Unlike consumers’ energy bills, there was no cap in place for businesses, which meant fuel costs were set to increase at even higher rates than household bills.

Prime Minister Liz Truss has today confirmed emergency measures to address the fuel crisis for consumers and businesses. While average household bills will be kept below £2,500 for the next two years, businesses will only receive “equivalent support” for six months. Further measures will then be targeted at vulnerable industries, according to the Prime Minister.

In response to today’s package of support, the Music Venue Trust said: “The financial impact of the energy price rises on the grassroots music venue sector presents an existential challenge. For a sector with a total gross turnover of £399 million, the current rise equates to an additional £90 million in costs.

“The policy announced today only goes some way in alleviating the challenge, in the very short-term, by creating an energy price cap for businesses that will be in place for an initial six months. The government has committed to reviewing this policy in conjunction with the hospitality sector. Music Venue Trust will contribute to this review to ensure the perspective of grassroots music venues are included in this decision-making process.”

"Music Venue Trust urges the government to take further action to ensure a long-term solution for energy provision"

The organisation has called on the government to devise long-term measures for the sector.

“As the policy announced today is only a temporary short-term measure, Music Venue Trust urges the government to take further action to ensure a long-term solution for energy provision for grassroots music venues providing an energy supply which is affordable, reliable and sustainable,” said the statement. “We need this action to take place as soon as possible to protect, secure and improve our grassroots music venues.”

Michael Kill, CEO NTIA, said: “We are extremely disappointed at the announcement by the Prime Minister today, this half-measure package is tantamount to support experienced during the pandemic, but lacks considerable detail to alleviate current business concerns.

"We have no time for drip-fed support, or to await the impact assessment of incremental measures, this needs to be a concise and immediately accessible package, which is proportionate and scalable. As the first major announcement of the Prime Minister and Chancellor's tenure, the government has failed businesses today, and with mounting debt across the sector we will see many have no choice but to consider the future, placing thousands of jobs at risk in the coming weeks, without additional support.”

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