Energy costs will shut pubs and breweries
Many pubs and breweries across theuk will be forced to shut their doors for good as they face rocketing losses without further energy support, industry bosses have warned.
In a new report by Frontier Economics, produced for the British Beer and Pub Association (BBPA), calculations showed that energy bills returning to their regular rate after March would put pubs and brewers at a loss of 20 per cent on average.
Businesses have benefited from the energy bill relief scheme but face uncertainty when the scheme finishes at the end of March.
The report showed energy costs are the biggest threat to their viability and "would be even more lethal" when the relief scheme ends.
This comes on top of cost inflation across other parts of their businesses including on food and drink, key commodities and wages.
Gemma Gardener, who runs The York Hotel, a pub with rooms in Morecambe, said: "Not only are our energy bills extortionate but our supplier has also added on extra unexpected charges outside of our standard rates as well, from a £2,000 installation fee to doubling our daily hire charge unexpectedly.
"We have tried to switch suppliers but been rejected, and the only reason we're able to keep going is because our pub company is helping us through.
"We're struggling with our bills but so are our customers as well and so we're being squeezed at both ends.”
Emma Mcclarkin, chief executive of the BBPA, said: "Along-term guarantee that energy costs and contracts will be fair and reasonable come the spring cannot come soon enough for our pubs and brewers.”