More than 150 pubs have closed down permanently since the beginning of the year, according to new data, as business utility bills rocket following the end of the government cap on energy prices.
One industry association has noted the ‘extortionate costs’ facing the sector, adding that more pubs are now closing than during the pandemic. 153 pubs closed between January and March, while 386 closed during the whole of last year, according to figures from commercial property data firm the Altus Group.
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The British Beer and Pub Association has said that the average annual energy bill for pubs this year will rise by a staggering £18,400. Meanwhile, cases of pubs being demolished or redeveloped have risen by 60%.
Emma McClarkin Chief Executive of the British Beer and Pub Association said: “Energy bills are decimating our sector with extortionate costs wiping out profits and closing pubs at a faster rate than the pandemic. Pubs that were profitable and thriving before the energy crisis are being left with no option but to shut up shop.
“We have been raising the alarm for months that energy costs are posing an existential threat to pubs across the country and these figures are evidence of that.
“It is essential that the Government intervenes to ensure energy suppliers are offering the option of renegotiation to pubs locked into unmanageably high energy contracts. Make no mistake, the longer this goes on the more pubs will be lost forever in communities across the country, something must be done immediately to save them.”
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Tweeting about the shocking new figures, Manchester’s night time economy advisor Sacha Lord said: “We're now losing 50+ pubs a month. Meanwhile, gas is half the price it was in Oct 21. 5 x cheaper than March 22. 7 x cheaper than Aug 22. The Energy firms are ripping the heart out of our High Streets. @ofgem CEO/Board should resign or be sacked.”
The government’s Energy Bill Relief Scheme ended on April 1, and reports from across the hospitality sector have painted a grim picture of what lies ahead for many businesses. Despite a busy Easter weekend for many, thanks to good weather, other data from Barclays suggests that many won’t be heading out to celebrate the coronation next month.
Just 8% of those asked said that they planned to go out to pubs, restaurants and bars to mark the occasion, with 59% saying they felt ‘less confident’ in their household finances.
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