Soaring energy costs put pubs at risk

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Soaring energy costs put pubs at risk

Pubs, bars and restaurants in the UK have urged the government to take action after revealing their average bills have surged by 81 per cent in the past year.

Industry bodies have revealed that less than a third of hospitality businesses are optimistic about their future after swallowing mammoth energy price increases, as well as more expensive food and wage bills.

Data collected by CGA by NielsenIQ on behalf of the British Institute of Innkeeping, UKHospitality, the British Beer and Pub Association and Hospitality Ulster revealed the extent of the current crisis facing the industry.

Last month, analysis of official government data by the commercial real estate specialist Altus Group found more than 150 pubs have disappeared for good from English and Welsh communities over the first three months of 2023, representing a 60 per cent jump on last year.

The trade bodies have joined forces to warn that more venues will shut permanently if cost pressures do not ease soon.

In a joint statement, the organisations said the energy crisis had pushed the industry to “breaking point”.

They added: “The Energy Bill Relief Scheme provided a short respite but with that falling away last month businesses are back to paying high costs, with no end in sight for the thousands locked into contracts who will be obligated to pay extortionate rates well into next year.

“Put simply, this data is extremely worrying for thousands of otherwise viable hospitality businesses.

“No profits means nothing to invest back into businesses, no cash reserves means nothing to fall back on, and businesses being forced to close means important, irreplaceable assets being lost from local communities and economies across the country forever."

They added that they hoped the government realised that if nothing was done to help them there would be a “lasting wider impact” affecting employment and from villages losing their “essential community hubs”.

CAMRA said the continuing rise in costs would put pubs and breweries at risk.

CAMRA national chairman Nik Antona said: “The prospect of energy bills massively increasing will be extremely worrying for hospitality businesses – particularly community pubs, social clubs and small breweries and cider producers that are vital for consumer choice and a thriving beer scene.”


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