Rising utility bills threaten hundreds of pub closures for lack of vital government support

HUNDREDS of pubs are facing call time as utility bills skyrocket in the absence of vital government support.

Market leaders are now demanding action from ministers before a major aid scheme is halted April Fool’s Day.

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The last weeks Budget extended the energy price ceiling for households until June, but was rejected small companiesincluding vulnerable pubs.

From 1 April, boozers will have to pay £18,400 more than they did last year for their energy bills. Average bills are £38,400 a year higher than before closures.

For most pubs, this will wipe out profits and threaten their survival.

Emma McClarkin, chief executive of the British Beer and Pub Association, told The Sun: “This has been a critical issue for our industry for far too long and as April 1 approaches, we have reached a point where businesses have nowhere to go. , as costs rise and their profit margins are completely erased.

“Without corporate energy action, the simple fact is thousands of us pubs and brewers are at risk of failure from April 1 and will be lost forever from communities across the country.

“We need the government to step in and give companies in the ‘pain zone’ of sky-high contract rates a chance to renegotiate and lower those costs.”

Last year alone, 560 pubs closed for good. During the pandemic a total of 850 closed in 2020 and 2021, the BBPA said.

Many drinkers struggle to entice customers back as people stay home during the holiday season cost of living crisis.

Pubs are also facing financial problems due to higher staff wages and more expensive beer contracts.

Many landlords are hesitant to pass on the costs to customers.

If the price of beer tripled in line with rising energy bills, the average cost of a pint of lager would rise from £4.45 to £13.35.

But instead of helping, energy suppliers are requiring pubs to pay thousands of pounds in deposit upfront to sign or renew contracts.

The tough stance stems from fears that pubs will go out of business because of thousands of unpaid bills.

The BBPA has written to MPs and Ofgem to demand that the regulator scrutinize the use of unfair contracts.

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Jo Farrell, landlady of The Windsor Castle nearby Stock port for 15 years, says her utility bill has risen from £500 a month to £1,500.

She said: “We got 11 pence off draft beer in the budget, but it’s no use. Everything we make goes to energy bills.

“We have fought the pandemic and the lockdowns and now we are being hit by these higher energy bills.

“The government has shot an arrow at the hospitality industry.”

PATH COST INCREASE SLOWS

House price growth has slowed since the start of the year, but rents have risen at their fastest rate since records began in 2016.

Average UK House prices rose 6.3 percent in the year to January, but this was a marked slowdown from December’s 9.3 percent growth, according to the Office for National Statistics.

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Despite the volatile conditions, homes in the UK are still on average £17,000 more expensive than a year ago, at £290,000.

Meanwhile, private rental costs have risen by 4.7 percent in one year.

Economists blame rising rents on potential homebuyers being priced out of the market by higher prices mortgage costs.

Carl Howard, of Andrews estate agents, said: “The current mismatch between population growth and housing construction continues to fuel demand for rental properties.”

FEVER RESULTS

HIGHER costs for glass bottles are forcing upmarket tonic producer Fever-Tree to raise its prices.

Sales of the mixer brand – which now includes ginger beer and a cola – rose 11 per cent to £344.3 million, giving Fever-Tree a record market share last year.

However, operating profit fell by around 45 per cent to £30.6m due to an increase in shipping and freight costs.

PRIMARK PASTE

PRIMARK is opening four more Greggs cafes in its larger stores — as the collaboration between the fashion and steakhouse brands deepens.

The concessions – known as Tasty by Greggs – will open in Newcastle, Bristol, Liverpool and Leeds between now and July.

The cafes feature quirky sausage rolls and donut-themed seating.

Primark has already trialled two Greggs cafes in London’s Oxford Street and Birmingham, as well as a clothing range.

Primark said: “We are delighted with the success.”

RISE WITH AMAZON

AMAZON is raising its workers’ entry-level pay to £11 an hour from next month.

The 50p hourly wage increase for warehouse workers coincides with an increase in the national living wage to £10.42 on April 1.

But it comes after Amazon announced it would cut an additional 9,000 jobs in a second round of layoffs.

The tech giant employs more than 50,000 people in the UK and 1.54 million worldwide.

An Amazon spokesperson said: “Over the past seven months, our minimum wage has increased by 10 percent.”