PostedAugust 30, 2022, 5:30 PM
UKSoaring energy prices threaten the survival of pubs and breweries
In an open letter published on Tuesday, industry bosses called on the British government to intervene to stem rising electricity and gas prices.
Without immediate government help, the UK might face the prospect of pubs unable to pay their bills, warn six of the country’s largest pub groups.
AFP
Many pubs and breweries might be forced out of business in the UK due to skyrocketing energy prices, industry bosses warned on Tuesday in an open letter calling on the government to intervene. The plea for help comes as the country’s cost of living crisis mounts, amid the campaign for Boris Johnson’s succession and a slew of strikes demanding pay rises .
Six of the country’s largest pub groups say they have seen their energy bills triple or more this year amid a spike in UK inflation that tops 10%, the highest rate in G7 countries, and which should accelerate further. “In some cases (tenant operators) of pubs give us their leave explaining that their business is no longer viable with such costs,” laments William Lees Jones, managing director of the JW Lees Group.
“If governments have put in place aid for households in the face of soaring prices, companies find themselves alone and it will get worse this fall,” warns Nick Mackenzie, managing director of the Greene King group, which has 2,700 establishments. “Without immediate government support to the sector, we might face the prospect of pubs unable to pay their bills, job losses and popular local venues forced to close across the country, which would mean that all the work for keeping pubs open during the pandemic would be ruined,” adds Nick Mackenzie.
La Camra, an association of British craft brewers, also argues that the boom in craft beers in the United Kingdom, dating from the early 2000s, is already slowing down and that establishment closures might accelerate due to the inflation of costs, particularly of energy.
Last week, the energy authority announced a jump in maximum regulated electricity tariffs by 80% per month per average household from October – and they are expected to rise further in 2023. But SMEs are not protected by no regulatory cap and they face even more astronomical increases. “We do not have the luxury of waiting for this winter and the inaction of the Prime Minister” Boris Johnson, on the departure, “might mean the end of many companies”, warned Friday the British Federation of SMEs.
(AFP)
