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.
Energy bills are set to go up by 80% for UK households in October, but it's different for businesses, who operate without a regulated price cap.
Pub and brewing company bosses are warning of closures due to the energy bill cost ever increasing (PA)
Some pub owners 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 the JW Lees pub group, said: “We have publicans who are experiencing 300% plus increases in energy costs and some energy companies are refusing to even quote for supply.
“In some instances, tenants are giving us notice since their businesses do not stack up with energy at these costs.
READ MORE: Average bills predicted to rise to £7,700 in 2023, experts say
“These are not just pubs but people’s homes and the hearts of the communities that they sit in.
“Government needs to extend the energy cap to business as well as households.”
The bosses, who sit on the board of British Beer and Pub Association (BBPA) have demanded the Government implement an urgent support package that effectively caps the price of energy for businesses.
Emma McClarkin, chief executive of the BBPA, said: “This rise in energy costs will cause more damage to our industry than the pandemic did if nothing is done in the next few weeks, consumers will now be thinking even more carefully about where they spend their money.
“There are pubs that weathered the storm of the past two years that now face closure because of rocketing energy bills for both them and their customers.”
A Government spokesperson said: “No government can control the global factors pushing up the price of energy and other business costs, but we will continue to support the hospitality sector in navigating the months ahead.
“That includes providing a 50% business rates relief for businesses across the UK, freezing alcohol duty rates on beer, cider, wine and spirits and reducing employer national insurance.
“This is in addition to the billions in grants and loans offered throughout the pandemic.”
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