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Daily Mirror
Daily Mirror
Business
Jeremy Armstrong & Graham Hiscott & Adam Aspinall

Three in 10 pubs to close across Britain next year due to crippling energy price hikes

Three in 10 pubs could go bust in the next year, piling pressure on the Government to act.

Half those who say they risk going to the wall warn they may not survive six months, with punishing energy costs an “existential threat”.

Yet the Government has vowed to press ahead with plans to slash energy support for firms by 85% in April.

The findings from an industry survey come amid new evidence pub closures are already on the rise.

Fifty pubs in England and Wales were turned into something else last month, according to property experts Altus Group – a steep rise from the average of 32 a month last year.

More and more pubs are closing down (Getty Images)

Pubs have also been left reeling by changing habits made worse by the Covid crisis and a surge in essential costs, such as energy.

More than 60% of the firms who responded to the survey by the British Beer and Pub Association, British Institute of Innkeeping, UKhospitality and Hospitality Ulster were pubs.

Research revealed that around 30% fear they will fail in the next year – and 66% only have enough cash to see them through the next six months.

Just 6% of respondents are confident the Government’s reduced Energy Bills Discount Scheme will protect the industry over the next 12 months.

Chancellor Jeremy Hunt leaves 11 Downing Street (Alastair Grant/AP/REX/Shutterstock)

The industry is calling for help from Chancellor Jeremy Hunt in next month’s Budget, if not before.

It also wants to see action taken over energy suppliers charging fees, refusing to take on business customers and not passing on a recent fall in wholesale prices. Emma McClarkin, chief executive of the BBPA, said: “Pubs and brewers across the country have operated under extraordinary conditions for close to three years now. The cost of energy is causing an existential threat.

“We need the Government to hold suppliers’ feet to the fire on passing on drops in wholesale energy prices, and for the Chancellor to give our pubs and breweries a break.”

Last month, 50 pubs in England and Wales closed for ever (Stock photo) (Getty Images)

Real estate adviser Altus Group said there were 39,738 pubs left in England and Wales last month – 1,148 fewer than in March 2020. Durham County Council’s area of the North East lost the largest number of pubs, down by 20.

The figure only includes pubs that have been converted, so the number of venues that are closed and empty is likely to be much higher.

A spokesman for the Government said: “We will always be on the side of businesses, including pub and bar owners. That’s why we are providing non-domestic energy users with an £18billion package of support and we’ve pledged further energy support from April onwards.”

Most southerly pub set to close

A landmark pub will close its doors after struggling with the economic pressures faced by the industry.

Staff at The Witchball which is Britain’s most southerly pub, will be calling last orders tomorrow.

Landlords Adam, Dee and Nick announced online: “It is with a very heavy heart that we are closing our doors after 17 years serving the community (literally). Sadly, many factors have impacted this industry making it impossible to maintain and staff our establishment.

“We apologise for the short notice, but times being as they are, we have to use our limited time left to close up.”

The pub, on The Lizard in Cornwall, was named after glass spheres hung in cottage windows to ward off evil spirits, spells, witches and ill fortune in the 17th century.

Bar 'not viable' after lockdown

Publican Michael McPherson shut his bar at the start of lockdown and never went back.

The dad of three ran the Carville Hotel in Newcastle’s East End for 28 years before moving to Co Durham, the area of the country worst hit by pub closures.

Michael worked in The Bay Horse in Bishop Auckland, before becoming landlord of Bar Tutsters. He was there for eight years until Covid hit.

Michael McPherson, owner of Bar Tutsters in County Durham (Daily Mirror)
Emma McClarkin, chief executive of the British Beer and Pub Association (Handout)

Michael, 76, a grandfather of five, said: “I never went back. It was not viable for me with the restrictions in place.

“I did receive a Government grant but I could not afford the rent.”

He added: “Having a pub is like having another child. Some will go under, only the most resilient will survive.”

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