Pubs “at risk of closure” due to energy bill increases

In an open letter to the government and leadership candidates, business leaders from across the brewing and pub industry are warning small businesses will close and jobs will be lost if immediate action isn’t taken on energy bills for companies. 

Raising the alarm of the “real and serious irreversible” damage the energy crisis will cause, chief executives of regional and family brewing and pub firms to international companies have said the “urgent support package” must effectively cap the price of energy for businesses. 

According to the letter, it’s an issue impacting the entirety of the industry supply chain, with a CO2 producer - CF Industries - announcing it will be ceasing production of what is a critical component in beer production and dispense in pubs, citing market conditions as a key decision driver. 

This call - from representatives from the likes of Greene King, Admiral Taverns and the board of the Beer and Pub Association - comes as Ofgem confirmed it would raise the energy price cap to more than £3,500. 

Admiral Taverns’ chief executive Chris Jowsey, said: “The impact of energy price rises on community pubs is truly frightening. 

“One of our licensees reluctantly gave notice to leave his pub, after the cost of electricity increased by 450%, making it impossible to trade profitably. Let’s not forget that for most licensees, the pub is not just their business but also their family home.

“I raised this issue with ministers over six months ago, but the government has failed to act. A small business price cap is essential if we want to retain local pubs and the jobs and support they provide to their communities across the UK.”

Emma McClarkin, chief executive of the British Beer and Pub Association, added: “This rise in energy costs will cause more damage to our industry than the pandemic did if nothing is done in the next few weeks, consumers will now be thinking even more carefully about where they spend their money. 

“There are pubs that weathered the storm of the past two years that now face closure because of rocketing energy bills for both them and their customers. If we lose them, we not only lose businesses and the jobs that go with them, but also the beating heart of communities across the country where people gather in times of need. 

“We need an energy cap for businesses before it’s too late.”