Rising energy prices could force British pubs to shut, businesses urge government to take action

A rapid increase in energy prices could force British pubs to close. Leading representatives from the industry have requested the government to take action. As part of the cost-of-living crisis, six of the biggest pub and brew companies in the country have reported that certain pubs have seen a more than threefold increase in bills this year.

The British Beer and Pub Association warned that if nothing is done in the case of rising energy prices brought on by an increase in wholesale pricing, a shortage of supply due to the Ukraine war might harm the sector.

Last week, Ofgem announced that gas and electricity rates for a family will rise by 80 per centin October.

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AFP reported that William Jones, director of JW Lees Pub, said, "We have publicans who are experiencing 300 percent-plus increases in energy costs and some energy companies are refusing to even quote for supply." He further said that there are few tenants giving the pub group notice due to their businesses being unable to afford electricity at the current price.

Another executive of Greene Group said that they experienced an increase of £33,000 ($38,600) in energy costs this year.

In an open letter to the government, Greene King, JW Lees, Carlsberg Marston’s, Admiral Taverns, Drake & Morgan, and St Austell Brewery urged the government to expand the cap to business. Nearly 750 businesses signed the open letter warning of rising prices, staffing shortages, and supply chain issues.

Pubs, which have been a cornerstone of British social life, have had a difficult time due to Covid pandemic.

Inflation has reached a 40-year high in Britain due to the country’s high cost of living.

The country has witnessed several strikes by workers over salary for not being able to keep up with the prices.

(With inputs from agencies)