Pub, restaurant and nightclub chiefs have warned that the hospitality industry is in “real jeopardy” this winter as a 300% rise in energy bills threatens to lead to mass closures. In an open letter to Boris Johnson, industry leaders say spiralling energy prices are "a matter of existential emergency", with many businesses slashing opening hours in a bid to cut costs.
The heads of five organisations representing the hospitality industry warn that thousands of jobs are now at risk, with businesses that survived the pandemic now struggling with debts averaging £40,000. They called on the Government to provide 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."
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Earlier in the summer, a hotel and restaurant in Heywood closed its doors citing a “ridiculous rise in utility bills” from “greedy energy providers”.
The Albany, on Rochdale Road East, functioned as both a hotel and a pub and restaurant named The Orchard. However, it announced via social media in June that it would be closing due to circumstances completely out of our control”.
The organisations behind the open letter - UK Hospitality, the Night-Time Industries Association, the Music Venue Trust, the British Institute of Innkeeping and the British Beer and Association - state in their plea to the Government: "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 It is also increasingly clear that a significant number of energy providers have withdrawn service provision from the Hospitality market altogether."
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.”
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