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Home Featured

East Reading cafe warns it would be unlikely to survive unless a cap on fuel prices for businesses is introduced

Phil Creighton by Phil Creighton
Monday, March 13, 2023 8:01 am
in Featured
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Tutu's Ethopian Table in east Reading Picture: Phil Creighton

Tutu's Ethopian Table in east Reading Picture: Phil Creighton

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ONE of Reading’s MPs has vowed to do what he can to help a popular business cope with the cost-of-living crisis.

Last week, Tutu Melaku shared an open letter to Matt Rodda about her Palmer Park-based Ethopian cafe.

She said that the enterprise would be unlikely to survive unless a cap on fuel costs for businesses is introduced very soon.

Unlike home owners, industry has not been given protection from sharp increases in energy bills. Ms Melaku said her gas and electric bills were nearly five times higher than this time last year.

“This is not due to any increase in use, but solely due to fuel price rises. My other regular business costs of food and essentials have also increased dramatically, but the fuel cost increase is particularly shocking and seems completely wrong,” she said.

And she felt she could not increase prices too much as her customers are struggling financially.

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The cafe, which serves snacks and drinks to families playing in the park, as well as hosting music and poetry events, employs local people, and Ms Melaku said: “I refuse to impact them with wage cuts or redundancies.”

She added: “We provide a safe and welcoming community space, used by individuals, families and local groups. We are the ‘go to’ venue for many local people, including the elderly, vulnerable and lonely. A wide range of community groups use my cafe as a base for their meetings and social events.”

She wasn’t asking for special treatment, acknowledging that her situation was not unique.

“There are numerous small, independent providers in the hospitality industry who have already shut down due to unmanageable costs. And many more, like me, who are struggling to survive,” she said.

“If a fuel price cap doesn’t happen very soon then within months the UK will be depleted of it’s backbone of small, independent businesses: especially cafes, pubs and restaurants.

“There will be devistating loss of local jobs and income.

“But more frightening than that: as these businesses disappear, then so too does the heartbeat of our nation. Without our venues and service there will be far fewer places where people can meet to laugh, cry, talk and dream, where people find company, warmth and a place to belong.

“That doesn’t happen in the same way in a McDonalds or a Costa.”

Mr Rodda agreed with the thrust of Ms Melaku’s letter, and promised to do what he could to help.

“Businesses like Tutu’s Ethiopian Table are vitally important to Reading’s economy, but they face huge energy costs at the moment. They need financial help in the short term – waiting for energy bills to drop in the summer is just not good enough,” he told Reading Today.

“I will take this case up with the Department of Business and Trade, but we need policies to help small businesses in the short term.

“The Government could offer support to small businesses by offering further business rate relief, paid for by a stronger windfall tax on the profits of energy companies.”

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