7 Oct 2022
The new head of the BVA has urged the Government to extend its current energy bill support scheme for businesses beyond next March or risk a “devastating” economic impact.
Allister Webb
Job Title
Malcolm Morley. Image © BVA
The new BVA president has warned that some veterinary practices may be forced to close without additional Government support to meet rising energy costs.
Malcolm Morley has written to the chancellor, Kwasi Kwarteng, to urge him to extend the existing support scheme for non-domestic customers beyond its current cut-off point next March.
In the letter, which has just been released, Dr Morley said some surgeries had seen their energy costs double to as much as 3% of their turnover in recent months.
He cautioned that, together with rising employment costs and staff shortages, the sector is under particularly severe pressure heading into winter.
Dr Morley wrote: “It is likely that these combined cost pressures will result in some veterinary practices having to close, while others will be forced to increase the cost of veterinary services, leaving some pet owners unable to afford essential care, with serious implications for animal welfare.
“It is therefore essential to the UK economy, to our food supply chains, and to the health and well-being of our animals that they are able to continue their work through the challenges we are currently facing.”
The letter welcomed the current GB Energy Bill Relief Scheme, which will help non-domestic customers for six months.
But Dr Morley added: “We are extremely concerned that the subsequent increase in costs after this period will result in more practices being forced to close, further exacerbating the workforce shortages facing the profession, increasing the cost of veterinary services and having a devastating impact on the economy.”
He also called for “urgent consideration” of other potentially supportive measures, including a cut in VAT and business rates relief.
The letter follows numerous warnings during recent months about the challenges facing the sector as a whole.
Although the CVS Group said it was confident of the “resilience” of the market as it reported increased profits recently, union leaders have expressed the fear that the sector could face collapse if recruitment and retention challenges, included those related to the cost of living crisis, are not addressed.
