Pubs across the UK are warning of mass closures due to ever-rising energy bills

pub and brewery Owners have sent out a warning that mass closures could be likely within months due to soaring energy bills.

Bosses of six of Britain’s largest pub and brewery company have signed an open letter to the government urging them to act 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.

The knock-on effects of the Russian invasion of Ukraine on skyrocketing gas prices have meant that energy bills for operators have skyrocketed.

Energy bills for UK households are expected to rise by 80% in October, but it’s different for businesses operating without a regulated price cap.

The Argus: Pub and brewery bosses warn of closures due to ever-rising energy bill costs (PA)Pub and brewery bosses warn of closures due to ever-rising energy (PA) bills

Some pub owner have said their bills have quadrupled or are struggling to even find suppliers willing to power their venues when contracts come up for renewal.

William Lees Jones, managing director of pub group JW Lees, said: “We have tax collector that are seeing energy costs rise by more than 300%, and some energy companies are even refusing to bid for delivery.

“In some cases, tenants are evicting us because their businesses are not putting up energy at these costs.

CONTINUE READING: Experts say the average bill is expected to rise to £7,700 in 2023

“These aren’t just pubs, they’re people’s homes and the hearts of the communities in which they sit.

“The government needs to extend the energy cap to both businesses and households.”

Bosses, who sit on the board of the British Beer and Pub Association (BBPA), have urged the government to implement an urgent support package that will effectively cap energy prices for businesses.

Emma McClarkin, Chief Executive of the BBPA said: “This rise in energy costs will do more harm to our industry than the pandemic, if nothing is done over the next few weeks consumers will now be even more careful about what they spend their money on.

“There is pubs who have weathered the storm of the past two years and are now facing closure due to skyrocketing energy bills for them and their customers.”

A government spokesman said: “No government can control the global factors driving up energy prices and other business costs, but we will continue to help the hospitality sector navigate the coming months.

“These include a 50% cut in business tax rates for companies across the UK, a freeze on alcohol tax rates for beer, cider, wine and spirits and a reduction in employer social security contributions.

“This is on top of the billions in grants and loans that have been offered during the pandemic.” Pubs across the UK are warning of mass closures due to ever-rising energy bills

Fry Electronics Team

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