‘Sink or swim’ for Peterborough restaurants as energy prices threaten the futures of businesses

Peterborough restaurants have spoken of the “sink or swim” decision forced upon them by the cost of living crisis.

The future of businesses within the hospitality sector have been put under threat across the country, as restaurants have felt the strain of increasing energy prices, the rising rate of inflation and an end to reduced VAT.

Liz Truss was announced as the UK’s new prime minister on September 5, and has already promised to take action on rising energy bills.

The new prime minister is set to announce plans to freeze the energy bills of businesses and households on Thursday (September 8).

The government is expected to borrow over £100 billion to freeze energy prices.

Ms Truss began the final stage of her Conservative Leadership campaign at Little Miracles, in Ravensthorpe, in July – the first of two visits to the city since reaching the final two in the race to become prime minister.

When asked by Tim Bedward-Jones, chair of trustees at Little Miracles, if she would return to the charity with her new health secretary if she was elected, Ms Truss replied: “Of course I will – that is my first pledge today.”

‘I don’t know how we’re going to survive’

“It’s horrendous at the moment,” Nick Rutta, owner of Embe, in Cowgate, told The Peterborough Telegraph.

"I don’t know how we’re going to survive. The costs of energy is going up and it’s sink or swim.

"I have two choices: either keep going or shut the business. I can’t just take a break until prices get back to normal because I still need to pay the rent.

“Customers just aren’t spending as much at the moment and there seems to be a trend towards takeaways, which hurts what we make as the delivery companies take a cut of the money too.

“It’s okay to look at the Government but the local Government need to do more as well. I’m sure they’re working hard but we need help and the big gas works right outside, obscuring the view of the restaurant, aren’t helping.

‘We’re doing all we can to stay open’

“We’re a family run business,” Muhammad Usman, owner of The Ladz, in Cowgate, said.

"Things are okay at the minute. The summer holidays were busier, but it’s quieter now.

"Prices are going up everywhere. As a family business, we’re doing all we can to stay open, but the coming situation is worrying.”

‘It feels government isn’t interested’

“One of the major problems aside from the massive energy bills we will have to pay is the VAT,” Peter Fierro, owner of The Pizza House, in Cowgate, said.

"When it was down at 5 per cent, that really helped us, but now they’ve gone and put it back up to 25 per cent.

"We can’t just write ‘+ the amount of VAT’ on the menu, people just won’t pay it.

“It just feels as if no one in the Government is interested in offering help.”