Industry bodies including the GPMA, BPIF, IPIA and Picon are urging printers to submit details of the prospective impact that large energy price rises would have on their businesses in order to substantiate a claim for ‘vulnerable industry’ status and thus gain extended protections beyond the six months’ cap promised by the Government in the ‘mini budget’ statement of 23 September.
Although the measures announced by Chancellor Kwasi Kwarteng to support businesses against severe energy price rises will give six months’ respite – albeit still at a level roughly double what they were a year ago – there is widespread concern that this will postpone rather than solve the problem for many.
A solution that would provide longer-term help would be for the print sector to be recognised as a ‘vulnerable industry’ and to this end the BPIF has launched an online survey via which companies are asked to provide – anonymously and in confidence – details of turnover, forecast profit and cashflow that would demonstrate the impact of five- or six-fold – or greater – increases in energy costs on their viability as businesses.
IPIA general manager Brendan Perring told Digital Printer, ‘The mission is to get data and information to argue for vulnerable industry status. The IPIA is confident that the government is listening, reacting logically and making sensible and proportionate measures. BEIS [the government department for Business, Energy and Industrial Strategy] is logical and well-researched; this information will not be going into a vacuum and we are confident that they understand just how severe this could be.
‘Now it up to us, the industry and trade associations to get the information in. The more who can send information and projections, the better,’ he added, noting that in addition to the levels of cooperation between the various industry trade bodies, largely forged during the pandemic period, there is ‘now a great level of trust between government, the civil service and business.’
BPIF CEO Charles Jarrold expressed similar views to Digital Printer, confirming that there was a regular and ongoing dialogue with BEIS, but observing that ‘Six months’ support only pushes the problem out for six months – it will still be a huge problem then.’ He explained that the BPIF survey needed SME and anecdotal input as well as aggregate figures, saying that this would enable the BPIF to ‘represent a splintered industry with a big SME component well’.
The BPIF survey is here.
More analysis and comment on the evolving financial situation will be included in the September/October issue of Digital Printer. You can register to receive it free of charge – electronically or in print – here.
