83% increase in pub and bar company insolvencies

It comes as those in the industry have faced increasing costs, with soaring energy prices hitting pub’s wallets hard throughout the winter after the government removed support for businesses’ energy bills. Alongside this, there have been concerns over falling sales as the cost-of-living crisis – including interest rate rises – has impacted consumer habits, making them less likely to spend on ‘non-essentials’. 

In addition to this, inflation has pushed up the prices that pubs need to pay for beer and food.

All this follows a difficult pandemic period which saw many pub and bar companies have very little by way of savings or capacity to borrow more, with the current economic downturn for some pub company owners being has been the final push into insolvency.  

UHY Hacker Young partner Peter Kubik said: “It’s deeply concerning that so many pubs and bars are closing their doors. In addition to the financial consequences for owners and employees, the loss of a pub can be felt quite keenly by the community. 

“This is a particularly difficult period for pub and bar owners, who find they need to spend more and more while earning less and less. Following an extended period of lost revenues during the pandemic, the cost-of-living crisis has been the final nail in the coffin for many.” 

“Perhaps the government should consider what it can do to alleviate pressures, for instance, by extending the energy bill relief scheme for the hospitality sector.”