Hospitality leader urges pause on energy levies

Kate Nicholls is chief executive (and chair in some statements) of UKHospitality, the trade body that has repeatedly lobbied chancellors and prime ministers on sector cost pressures. (ukhospitality.org.uk). (ukhospitality.org.uk) UKHospitality sent a joint letter to the Chancellor in November 2024 outlining an anticipated £3.4 billion squeeze on hospitality costs from April and citing board members from Fuller’s, Stonegate Group and Whitbread among signatories. (Hospitality & Catering News). (hospitalityandcateringnews.com) The Department for Energy Security and Net Zero launched a Plan for Change trial in June 2025 offering free energy and carbon‑cutting advice to 600 pubs, cafés, restaurants and hotels, with an estimated £3 million in savings across participants. (gov.uk). (gov.uk) Independent analyses show “levies” or policy costs are a measurable slice of energy bills — Nesta estimates levies account for about 16% of a typical household electricity bill and 5.5% of gas, with Ofgem setting out separate bill components including unit rates, standing charges and taxes. (nesta.org.uk). (nesta.org.uk) UKHospitality has urged competition scrutiny of the business energy market and formally called for a CMA market investigation, arguing entrenched market failures leave hospitality exposed to high commercial energy charges. (catererlicensee.com). (catererlicensee.com) Industry commentary and trade titles note hospitality has been left out of some government business energy support proposals and that new regulatory or levy changes planned for late‑2025 could further affect commercial contracts, keeping pressure on calls for immediate policy relief. (TheCaterer; PEPGB). (thecaterer.com)