UK in electric shock; Will the pubs be closed en masse?,

editor September 02, 2022 0

The international energy crisis arising from the Ukraine-Russia war is about to create a double blow for Britain in the coming severe winter.As the crisis deepened, rising prices pushed pubs and nightclubs to the brink of closure.According to reports, as much as 70% of pubs may have to close due to soaring inflation.

Pub and brewing company owners have sent out a warning saying mass closures could be likely within months due to rapidly increasing energy bills.

Bosses of six of the UK’s biggest pub and brewing companies have signed an open letter to the Government urging it to act in order to avoid “real and serious irreversible” damage to the sector.

These included Greene King, JW Lees, Carlsberg Marston’s, Admiral Taverns, Drake & Morgan and St Austell Brewery.

Knock-on effects from the Russian invasion of Ukraine for spiralling gas prices have seen energy bills massively rise for operators.

UK households will see their energy bills rise by 80% in October, but it is different for businesses operating without a regulated price cap.

When contracts are due for renewal, some pub owners claim their bills have quadrupled or that they can't even find suppliers willing to power their establishments.

The managing director of the JW Lees pub company, William Lees Jones, stated: "Some energy firms are refusing to even quote for supplies, and we have publicans who are experiencing energy bill hikes of more than 300%.

"In some cases, tenants are giving us notice because their companies can't afford the costs of energy at this time.

These aren't simply bars; they're also people's homes and the hubs of the neighbourhoods where they're located.

The government must make the energy cap applicable to both families and businesses.

In order to successfully control the cost of energy for companies, the bosses who sit on the board of the British Beer and Pub Association (BBPA) have requested that the government put in place an urgent support package.

The BBPA's chief executive, Emma McClarkin, stated: "Consumers will now be even more cautious about where they spend their money. If nothing is done in the next few weeks, this surge in energy costs will inflict more damage to our industry than the epidemic did.

Pubs that survived the storm of the previous two years are now in danger of closing due to skyrocketing energy costs for both them and their patrons.

"No government can control the global causes driving up the price of electricity and other business expenditures, but we will continue to support the hotel sector in navigating the months ahead," a government spokesperson said.

"That includes freezing alcohol duty rates on beer, cider, wine, and spirits, lowering employer national insurance, and offering a 50% business rates relief for companies across the UK.

This is on top of the enormous amounts of grants and loans that were provided during the pandemic.

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