A group of UK pub chains has warned that soaring energy prices could lead to a swath of closures and urged the government to provide a package of support.
In an open letter published on Tuesday, six breweries called for “immediate government intervention” to help with energy bills that are expected to rise beyond already record high levels in the winter.
The pub chains are Greene King, Admiral Taverns, JW Lees, Carlsberg Marston’s, Drake & Morgan and St Austell Brewery.
In the letter, the companies said some price rises were “upwards of 300 per cent on pre-pandemic energy bills, with the current average increase around 150 per cent” across the sector.
The increases were “putting jobs and businesses at risk. As more fixed price contracts come up for renewal this is only worsening. The time to act is now,” the letter said.
“Without swift and substantial intervention from government . . . we will witness a huge number of pubs close their doors for good, leaving individuals without jobs during a cost of living crisis and communities without [their] social heartbeat.”
Ofgem, the UK energy regulator, on Friday said that the price cap on household bills would rise 80 per cent in October to almost £3,600 per year as the war in Ukraine drives up gas prices. There is no energy price cap for businesses.
Chris Jowsey, chief executive of Admiral Taverns, said that tenanted pubs now paid more for their energy bills than they did in rent.
“The challenge is huge. There will be serious risk to licensees and the communities they serve. We urgently need a small business energy cap.”
Although Jowsey said Admiral, which has 1,600 pubs, had invested in energy-saving measures, the higher energy costs were “of such a scale” that the chains “desperately need the government to intervene”.
Jowsey criticised the government for failing to implement support measures until after the Conservative party elects a leader next Monday.
“I raised this issue personally with ministers more than six months ago, and I find it incredible that we need to wait for one person to be elected before we get some decisions and some policy,” he said.
Nadhim Zahawi, UK chancellor, on Tuesday said that more government measures to help businesses and households with their energy bills were on the way.
Zahawi said he was “preparing options for the incoming prime minister to do even more” to assist with energy bills. “We know we need to do more because . . . into next year, those bills will probably go up further. We are working up all the options. Nothing is off the table.”
Source: Economy - ft.com
