Many pubs and breweries across the UK 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% 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.
