Sector awaits details of proposed energy plan

The arts sector is waiting for further guidance on the government’s plan to help businesses tackle the energy crisis.

Prime Minister Liz Truss announced intention to offer businesses, charities and public sector organisations six months of support with their energy bills last Thursday (8 September), on her third day in post.

The scheme has been labelled the equivalent of the energy price guarantee being offered to households from 1 October and is expected to take the shape of a six-month price cap on energy bills.

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• Energy prices could force closures, venues warn
• Sector warns of unprecedented energy price hikes

The scheme could provide a lifeline to many arts organisations facing unparalleled energy price hikes but further details on the plan, including what the cap will be set at and when help will be available from, have yet to be released.

Government insiders have said they hope to make progress on designing the scheme this week, after No.10 confirmed they do not expect the death of Queen Elizabeth II to slow down rolling out the scheme for households.

According to The Telegraph, leaders in the energy sector have told Truss details of the plan need to be finalised “within days” for the scheme to take effect this winter.

Sector leaders cautiously welcomed the announcement of ringfenced support for businesses, while calling for further details and longer-term support.

BECTU head Philippa Childs said the sector “urgently [needs] more detail and a targeted support plan to safeguard the creative industries”.

“Now more than ever, the sector needs urgent, sustained support to protect creative jobs and ensure the arts continue to be available to all," she told the Stage.

Annabel Turpin and Gavin Barlow, co-leaders of the Future Arts Centre, said some of its 120 members are being quoted tariffs more than eight times their current bills.

While welcoming the pledged price cap, they called for “certainty over a longer period if we are to navigate the next 12-24 months”.

"Ironically, at a time when we’re questioning whether we can pay our own bills, many of us are being approached by local authorities about establishing Warm Spaces schemes and being encouraged to provide a warm place for our communities over the winter. Let’s hope we can,” they added.

Extra help for vulnerable businesses

The government’s six-month scheme will likely be followed by extended support for vulnerable businesses, Truss said last week.

The Prime Minister, who listed the hospitality sector as one area likely to receive additional support, said Business Secretary Jacob Rees-Mogg will work with businesses to determine where additional support is required.

Leaders in the arts have said the creative sectors will need to be included in extended support packages.

UK Theatre joint presidents Jon Gilchrist and Stephanie Sirr have said they look forward to working with Rees-Mogg to “provide a business case for longer-term support for theatre as a vulnerable sector”.

They added that theatres are facing immediate cost increases of more than 600% and called on the government to “urgently clarify” details of the initial six month guarantee.

The Music Venue Trust also plans to contribute to the government's review to “ensure the perspective of grassroots music venues are included in the decision-making process”.

MVT Venue Support Manager Clara Cullen said the government should ensure a long-term solution that provides an energy supply which is affordable, reliable and sustainable: “We need this action to take place as soon as possible to protect, secure and improve our grassroots music venues.”

The government has set a target of reviewing the extension in three months’ time to decide which sectors will receive ongoing help.

Extension of support could be the difference between some businesses surviving the winter or not. Since the start of the year, 87% more businesses have been made insolvent compared with the same time period last year.

According to Simply Business CEO Alan Thomas, small businesses are particularly are at risk with many still in recovery mode following pandemic.

“The message from small businesses is clear: this is a pandemic level crisis and the clock is ticking,” he said.