Pubs and restaurants face 'abyss of closure' as bills rocket by 300%, say bosses

Hundreds of struggling pubs, restaurants and nightclubs face "an abyss of closure" as 300% rises in energy prices drive businesses over the edge, Boris Johnson has been told.

In an open letter to the PM, industry chiefs say rocketing energy prices are "a matter of existential emergency", with many slashing opening hours in a desperate bid to cut costs.

They warn thousands of jobs are now at risk, with businesses that survived the Covid crisis struggling with debts averaging £40,000.

In an open letter the heads of five organisations representing the hospitality industry have called on targeted support to help venues stay afloat.

Kate Nicholls, chief executive of UK Hospitality said: “Hundreds of hospitality businesses across the country are staring into an abyss of closure and possible failure, leading to thousands of job losses; so it’s now or never for Government help and support if this vital sector is to survive the extraordinary threats pushing much of it to the very brink of existence."

Industry bosses say some restaurants have already started to slash opening hours (Getty Images/iStockphoto)

In an open letter to the Prime Minister, UK Hospitality, the Night-Time Industries Association, the Music Venue Trust, the British Institute of Innkeeping and the British Beer and Association wrote: "With chronic challenges in the supply chain, labour shortages, interest rates and inflation, rocketing energy prices have become a matter of existential emergency for businesses in our sector.

"Hospitality operators face average annual bill increases in the region of at least 300%, putting at risk businesses and jobs. It is also increasingly clear that a significant number of energy providers have withdrawn service provision from the Hospitality market altogether."

Some hospitality venues have seen their bills soar by 300%, putting them thousands of pounds in debt, industry bosses warn (Getty Images/iStockphoto)

Emma McClarkin, chief executive of the British Beer and Pub Association said, “Rising energy bills are putting pubs in real jeopardy. Sudden, extreme price hikes are already forcing publicans to make tough choices, from reducing opening hours to cutting options on their menus.

"We are experiencing a perfect storm that is not only shrinking but eradicating profitability margins.

"We urgently need an energy price cap for small businesses before extortionate bills cripple pubs and we lose them forever in communities across the country.”