17 Jan 2023
Veterinary practices are being urged to ensure they are prepared for significant reductions in government help to meet their energy costs from the spring.
Allister Webb
Job Title
It is understood that energy support from Rishi Sunak's government to veterinary practices will likely reduce from March. Main image © Just Jus / Adobe Stock
Veterinary practices are being urged to act now to ensure they are prepared for significant reductions in government help to meet their energy costs from the spring.
Ministers have announced a new programme of support that will offer discounts on both gas and electricity to non-domestic users for a further year from the beginning of April. But it is estimated that the new programme will cost around £5.5 billion to deliver – less than a third of the projected £18 billion of support being offered through the current winter period.
Industry leaders have now warned that the moves, which were outlined when parliament returned from its Christmas break on 9 January, will only increase the strain on the sector this year.
VMG president Rich Casey said: “While we’re yet to understand the detail, it’s likely that energy support to veterinary practices will reduce from March. This will put more pressure on an already challenged profession.
“We will look to collaborate with the UK’s other veterinary associations in lobbying for more support for the veterinary sector, but the government has made it clear that the energy cost package is time-limited.
“Practices should be taking steps now to reduce their energy consumption in time for March. A smart meter can help to identify power-hungry activities, giving an opportunity to review practice processes to make them smarter.
“Longer term, planning to invest in newer, more energy-efficient technologies is also essential to help to mitigate current and inevitable future increases in energy costs.”
BVA president Malcolm Morley warned that the crisis could force some veterinary practices to close altogether in a letter to the then chancellor Kwasi Kwarteng in October, and reiterated that concern during a recent interview with Vet Times.
Following the latest announcement, Dr Morley said: “Energy costs remain a serious concern for all businesses, including veterinary practices.
“It is, therefore, disappointing that the Government has reduced support while energy costs remain very high.
“It will only add further pressures to practices who are also tackling the wider fallout of the cost of living crisis.”
The new proposals follow a review of the current arrangements that was announced by the current chancellor, Jeremy Hunt.
From 1 April, non-domestic customers will receive maximum discounts of £19.61 per megawatt hour (MWh) on electricity and £6.97 per MWh on gas.
The present scheme limits prices for non-domestic users to £211 per MWh for electricity and £75 per MWh for gas, compared to wholesale prices that had been estimated to be almost three times higher.
Additional support is set to be offered to what the Government terms “energy and trade-intensive sectors”, though they will only apply to 70% of the volumes used and does not include the veterinary sector.
Treasury minister James Cartlidge claimed the plans were “fair” in meeting both the needs of businesses against the need for financial prudence.
He said: “Ultimately, it is in the national economic interest that we move to a position where the Government do not routinely subsidise UK businesses.
“It is not for the Government to habitually pay the bills of businesses any more than it is for the Government to tell businesses how to turn a profit, and it cannot be that the taxpayer props up failing or unproductive firms.”
But Labour shadow minister Abena Oppong-Asare denounced the measures as an example of “sticking-plaster politics” that meant firms were unable to plan for the future.
The Green Party’s Caroline Lucas added: “Let us be clear: this decision poses an existential threat to small businesses, many of which think that, in a sense, they are being left vulnerable to wholesale energy price hikes while the Government wash their hands and walk away.”
Mr Cartlidge insisted the Government understood the “anxiety” created by high energy costs, but had to balance its support with the cost to the public finances.
