UK energy prices threaten pub survival

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UKRising energy prices threaten the survival of pubs and breweries

In an open letter published on Tuesday, industry bosses called on the UK government to intervene to stem rising electricity and gas prices.

Six of the country’s biggest pub groups have warned that without immediate government help, the UK faces the prospect of pubs not being able to pay their bills.

AFP

Rising energy prices could force many pubs and breweries in the UK out of business, with industry bosses calling on the government to intervene in an open letter on Tuesday. The appeal for help comes as the country’s cost of living crisis deepens amid a campaign to succeed Boris Johnson and strikes over pay rises.

Six of the country’s biggest pub groups say their energy bills have tripled or more this year, with UK inflation rising to 10%, the highest rate among G7 countries, and set to accelerate further. “Sometimes pubs (tenants) give us leave explaining that their business is no longer viable because of such costs,” laments William Lees Jones, managing director of JW Lees Group.

“If governments provide housing subsidies in the face of rising prices, companies are left alone and that will get worse this fall,” warns Nick Mackenzie, managing director of the 2,700-company Green King Group. “Without immediate government support for the sector, the prospect of pubs not being able to pay their bills, job losses and the closure of popular local venues across the country means all the jobs that keep pubs open during the pandemic will be ruined,” says Nick Mackenzie.

La Camra, the British craft brewers’ association, argues that the boom in craft beers in the United Kingdom has already been slowing since the early 2000s and that company closures could accelerate due to inflation of costs, particularly energy.

Last week, the Energy Commission announced an 80% increase in maximum regulated electricity bills for an average household per month from October – and they are expected to rise further in 2023. But SMEs are not protected by any regulatory cap, and they still face astronomical odds. increases. “We don’t have the luxury of waiting this winter and the Prime Minister’s inaction,” as Boris Johnson’s departure “could spell the end for many companies”, warned the Federation of British SMEs on Friday.

(AFP)

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