In partnership with
SEKHON GROUP OF COMPANIES
With prices of energy rising nationwide, alongside the cost of living, it is becoming a financially straining time for all. However, disparity in average income, home prices and opportunities can see some affected to a greater extent in the North than other areas in the country. The Sekhon Group of Companies including Iqbal Singh Sekhon, also known as Simmy Sekhon, met with Chancellor of the Exchequer Rishi Sunak to discuss the immediate future of the financial crisis we as a nation have found ourselves in, and how the government will address the situation which is becoming an increasing concern as it develops.
It's hard to tackle the issue at hand without recognising the causes behind the crisis – most prevalently the ongoing supply issues due to the Covid-19 pandemic as well as conflict between Ukraine and Russia. Supply issues directly affecting the price of wholesale gas have caused major issues for both the average bill payer and corporations alike with multiple high profile energy firms such as Bulb collapsing due to the crisis. Simmy Sekhon highlights the issues faced by landlords and owners of commercial property who he feels may not have been appropriately addressed including the responsibility to maintain the comfort of hundreds of tenants which can prove be borderline financially unviable in some cases.
Simmy Sekhon recounts a case in which flats owned and managed by the Sekhon Group sees a loss in profit through keeping tenants and that it would make more financial sense to have the property instead sit vacant. However, implications soon come to mind about the tenants of these properties as it would be unethical to force them into finding new housing and this could have a further knock on effect of homelessness and displacement which is to be avoided at all costs says Simmy Sekhon. He believes issues relating to financial struggles in this time would only worsen if stability is removed from tenants as this adds extended pressure in an already difficult time.
Bringing attention to the affect this crisis is having in the North, Simmy Sekhon highlights the disparity in housing costs between the north and south, noting that despite the south having higher average incomes, those in the north are suffering from increasing unit costs of energy at a greater extent – a disparity which as not been addressed in many of the government briefings and public announcements. Simmy Sekhon hoped to bring this to the forefront of the government’s attention using his opportunity to meet Chancellor of the Exchequer Rishi Sunak.
Mr Nirmal Singh Sekhon MBE (CEO of the Sekhon Group of Companies) raised his concerns in his meeting with Rishi Sunak, first asking for his views on the Ukraine war with consideration of any indication of how long he thinks it may last as well as any further impact that could be expected as a result regarding the energy crisis we now find ourselves in. Consequences surrounding the Ukraine crisis include the UK, like many other countries, rejecting deals and severing ties with gas manufacturers in Russia, home to the biggest natural gas reserves on the planet. This supply strain is one of the greatest impacting factors into this crisis, so hearing insight from the government helps everyone from the average homeowner or tenant all the way to property developers and landlords such as the Sekhon Group. Mr Sekhon furthered this by asking what the Exchequer was planning to do to alleviate issues faced by homeowners and tenants, and where energy bills are included within the tenancy prices, if landlords could expect any support or guidance.
Despite these issues being raised and the fundamental impact that it would have, it seemed that the Chancellor said there isn’t much that government can do more what has already been implemented, but it is felt that the taxation on utilities could be discounted or reduced in the same way that fuel duty prices have seen a 5 pence decrease.
Whilst some funding via loans have been given to homeowners and tenants, landlords have been excluded from this, stirring up implications for the ownership of these buildings that many tenants call home as they become financially unviable for the owners/landlords. When questioned by Mr Sekhon about this, Sunak couldn’t provide a direct answer as it is a complex manner, but Simmy Sekhon raises concerns that Sunak did not understand the extent of the issue or the questions asked relating to it. Simmy Sekhon asks why landlords who include energy bills within the tenancy have not received the compensation that others have. He hopes to see action from the government to ensure all have some form of protection and assurance during this time of financial crisis.
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