No Spring Statement relief for hospitality

Energy and sustainability consultancy Advantage Utilities is urging hospitality businesses to take proactive action, offering five energy and cost-saving strategies which will ease the strain of ongoing economic challenges.

Despite calls from a coalition of industry trade bodies and associations pressing for relief measures, including an immediate reduction of hospitality VAT to 15%, and a reversal of the National Insurance Contribution (NIC) increase, no such changes were implemented in today’s Spring Statement.

“The challenging fundamentals facing hospitality businesses aren’t changing anytime soon,” warns Dr James Crosby-Wrigley, Head of Sustainability at Advantage Utilities.

Hospitality interior

“Commercial energy prices remain a large source of expenditure and it's imperative businesses look at what is in their control when it comes to their operations and processes.”

Calling on the hospitality sector to take swift and strategic action, Dr Crosby-Wrigley highlights five often-overlooked ways to reduce energy costs:

1. Comprehensive Site and Process Audits — Conducting regular audits to identify inefficiencies in equipment usage, lighting, and even billing practices — revealing hidden cost drains and opportunities for savings.
2. Advanced Energy Monitoring - Monitoring solutions which allow identification for out-of-hours consumption, unnecessary idle-time, and opportunities for enhanced technological efficiency.
3. Solar Photovoltaic - A source of self-generating power from a renewable energy source at a fraction of the grid price.
4. Voltage Optimisation — Adjusting electricity supply to match the specific voltage requirements of on-site equipment, reducing unnecessary grid consumption and cutting energy waste.
5. Flexible Purchasing — Securing energy at the most competitive rates by taking advantage of market opportunities and locking in longer-term contracts where beneficial. This approach not only protects against wholesale price surges but also supports sustainability by encouraging more efficient energy use.

“Our message to hospitality businesses after this Spring Statement is clear: achieving cost-efficient operations remains key to safeguarding against an uncertain future,” says Dr Crosby-Wrigley.

“Businesses have a prime opportunity to reduce costs through smarter energy solutions such as advanced monitoring solutions, solar PV, voltage optimisation, and flexible energy purchases, leading to better protection of their bottom line while fostering long-term sustainability.

“Ultimately, the most affordable and eco-friendly energy is the energy you don’t use at all. It’s crucial for the hospitality sector to explore the tools and strategies it can easily implement to reduce consumption and drive both cost savings and environmental benefits,” Dr Crosby-Wrigley concludes.

For more information visit www.advantageutilities.com