Pubs and bars plead for Government action on energy bills

Industry bodies have revealed that less than a third of hospitality businesses are optimistic about their future after swallowing mammoth energy price increases, as well as more expensive food and wage bills.

Data collected by CGA by NielsenIQ on behalf of the British Institute of Innkeeping, UKHospitality, the British Beer and Pub Association and Hospitality Ulster revealed the extent of the current crisis facing the industry.

In total 86% of business owners were worried about their energy bills and only 29% felt optimistic about the next 12 months.

More than 150 pubs shut their doors in the first three months of 2023 (Image: Dominic Lipinski/PA Wire)

Last month, analysis of official Government data by the commercial real estate specialist Altus Group found more than 150 pubs have disappeared for good from English and Welsh communities over the first three months of 2023, representing a 60% jump on levels from last year.

The trade bodies have joined forces to warn that more venues will shut for good if cost pressures do not ease soon.

What do pubs and bars want from the Government?

In a joint statement, the organisations said the energy crisis had pushed the industry to a "breaking point".

They went on: "The Energy Bill Relief Scheme provided a short respite but with that falling away last month businesses are back to paying high costs, with no end in sight for the thousands locked into contracts who will be obligated to pay extortionate rates well into next year.

“Put simply, this data is extremely worrying for thousands of otherwise viable hospitality businesses.

“No profits means nothing to invest back into businesses, no cash reserves means nothing to fall back on, and businesses being forced to close means important, irreplaceable assets being lost from local communities and economies across the country forever."

The organisations warned the mass closure of pubs and bars would affect local employment (Image: Canva)

They added that they hoped the Government realised that if nothing was done to help them there would be a "lasting wider impact" affecting local employment and from villages losing their "essential community hubs".

A Government spokeswoman said: “We acted swiftly to provide businesses, including the hospitality sector, with an unprecedented package of support.

"As of April, this has saved them £6.9 billion on energy costs – amounting to around £35 million a day – and enabling some to only pay around half of predicted wholesale energy costs.

“Global energy prices have fallen significantly and are now at their lowest level since before Russia’s illegal invasion of Ukraine. The new level of government support reflects this welcome fall in prices, but we will continue to stand by businesses.

“We are also assisting the hospitality sector with support such as freezing of alcohol duty, cutting energy bills, a £13.6 billion business rates relief package and a £2.4 billion fuel duty cut.”