“The community has just broken up,” said Bryan Furey, former landlord of the Gillygate pub in York, who was forced to called in administrators in July after his energy bill almost tripled to £2,500 a month.
Sitting in the deserted garden of the pub, which until recently hosted theatre and quiz nights, a conker championship and customers on cycle tours, along with many regulars, Furey said the massive energy bill was the final straw in a pile of difficulties that had weighed on the pub.
A rent rise, higher staff costs and more competition for his eight hotel rooms from an explosion of Airbnb properties in the city centre all took their toll. “It’s a perfect storm that will force a lot of people to shut,” he said.
In the heart of York, running close to its famous minster, Petergate is home to an eclectic mix of high street businesses, including several pubs and restaurants, jewellers, independent clothing retailers, bookshops, a carpet store and beauty parlours. Now many are wondering how they will cope this winter.
Rising energy bills are just the latest blow on top of increased supplier and delivery charges, rising staff costs and shortages of key workers, partly caused by Brexit. Meanwhile, trade is expected to drop off when customers’ winter energy bills hit the doormat.
Tempt, a vegan chocolate shop, closed its doors last month, while a small jeweller has also just shut.
Emma Mellor’s Handmade Rugs store is struggling with high delivery charges and she is worried that her customers will rein in spending when their bills rise. At one of the bookshops, there are concerns about passing trade as its energy bill is largely limited to lighting costs.
Mark Snowden of Jax Barbers said he had just received a new energy bill that was up 300% on the previous one. “I’ve been in business for 40 years and this is the hardest it has ever been by far,” he said.
He added: “It’s a very gloomy situation. Covid started it off. I lost all my office workers as they are now working from home, and the old people, who now haven’t got the courage to come out. I lost 30% to 40% of my business and now we have got this [big bill increase].”
Rebecca Hill, managing director of the Galtres Lodge hotel and Forest restaurant on Petergate, is on a fixed contract for energy bills until next year but is already nervous about the future because the bills at her other business in nearby Ripon that does not have a long-term energy deal have gone “astronomical since the beginning of the year” – more than 20 times the rate that she is paying in York.
Hill has put on hold plans to convert the Ripon site from an events venue into a year-round hotel and is considering whether to close between January and March, when the bills are highest and income will probably be down.
In York, she is considering closing on Mondays to reduce costs, partly because of difficulties in recruiting staff and to keep a lid on her outgoings during quiet times.
“Consumer confidence and spending is the biggest thing I am worried about,” she said.
“The restaurant is still busy at key times – lunch and dinner – but it is in between. People are not coming out for afternoon tea or a drink before dinner. We are seeing the nice add-ons in decline.”
Kerry Elstob, owner of Just Smile Designs, which sells homemade cards, printed mugs, kids’ clothing and other handicrafts, has a three-year deal on her energy bill until next year but is worried about a potential rent rise as her lease is due for renewal next month and several nearby businesses have seen rents double.
“If my rent does go up, I might just go online,” she said.
“I am worried. This is tougher than during lockdown, as then we did get help and there was talk of help before it was initiated. Now there is no talk of help.”
