Thousands of pubs face closure without urgent government support to soften the blow from soaring energy bills, the beer industry has said, putting jobs at risk in a sector still battling to recover from the Covid pandemic. The bosses of companies owning almost half of the UK’s 47,000 pubs said tenants were already giving notice because they could not cope with energy bills, which are due to rise more than fivefold in some cases. Unlike households, businesses do not benefit from a cap on what suppliers can charge for gas and electricity, leaving many firms facing oblivion without state intervention. In a letter to the government and the Conservative leadership candidates, Liz Truss and Rishi Sunak, the British Beer and Pub Association said mass job losses were inevitable in the absence of help for an industry that employs 940,000 people.
Nick Mackenzie, the chief executive of the 3,100-strong pub chain Greene King, said the energy bill blow had come just as the sector was battling back from the ravages of the Covid-19 lockdowns, which hit hospitality particularly hard and left many with punishing debts. “While the government has introduced measures to help households cope with this spike in prices, businesses are having to face this alone, and it is only going to get worse come the autumn,” Mackenzie said. “Without immediate government intervention to support the sector, we could face the prospect of pubs being unable to pay their bills, jobs being lost and beloved locals across the country forced to close their doors, meaning all the good work done to keep pubs open during the pandemic could be wasted.” His counterpart at St Austell Brewery, Kevin Georgel, said thousands of pubs could be forced to call last orders for good.
Chris Jowsey, the chief executive of Admiral Taverns, said the impact was frightening. He said: “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.”
