- Businesses have benefited from an energy bill relief scheme but face uncertainty when the scheme finishes at the end of March
- The British Beer and Pub Association believes pubs and brewers would pay an extra 20 per cent on average after energy rates return to normal
Many pubs and breweries across Britain will be forced to shut their doors for good as they face rocketing losses without further energy support, industry bosses have warned.
In a new report by Frontier Economics, produced for the British Beer and Pub Association (BBPA), calculations showed that energy bills returning to their regular rate after March would put pubs and brewers at a loss of 20 per cent on average.
Businesses have benefited from the energy bill relief scheme but face uncertainty when the scheme finishes at the end of March.
The report showed energy costs are the biggest threat to their viability and “would be even more lethal” when the relief scheme ends.
This comes on top of cost inflation across other parts of their businesses including on food and drink, key commodities and wages.
Emma McClarkin, chief executive of the BBPA, said: “A long-term guarantee that energy costs and contracts will be fair and reasonable come the spring cannot come soon enough for our pubs and brewers.”
She continued: “They are planning now for the months ahead and need assurance that bills won’t rocket and completely wipe out profits. This report demonstrates the unique position our sector finds itself in, vulnerable to cost inflation across the entirety of its supply chain and acutely conscious of declining consumer confidence and wanting to avoid increasing prices for struggling customers.”
Compounding problems for bars and brewers is a warning from Britain’s National Union of Rail, Maritime and Transport Workers that it would stage strikes over December and January in a long-running dispute over pay, signalling travel disruption before and after the busy Christmas holiday period.
The union rejected an offer from the Rail Delivery Group aimed at ending the strike action planned.
The BBPA said the week of the strikes are usually the year’s busiest for the pub industry.