British pubs and brewers warn of mass closures due to energy costs

London, Aug 30, (PA Media/dpa/GNA) – Pubs and brewers across Britain are at risk of closure within months, amid price hikes upwards of 300%, industry bosses have warned.

Bosses of six of Britain’s biggest pub and brewing companies, have signed an open letter to the government, urging it to act in order to avoid “real and serious irreversible” damage to the sector.

Greene King, JW Lees, Carlsberg Marston’s, Admiral Taverns, Drake & Morgan and St Austell Brewery all sounded the alarm on Tuesday.

Out of control gas prices following the invasion of Ukraine by Russia, have contributed to rocketing energy bills for operators.

On Friday, energy regulator Ofgem, confirmed that bills for an average British household would surge by 80% in October, when the new price cap comes into force.

However, businesses operate without a regulated price cap, with some pub owners warning that their bills have quadrupled or are struggling to even find suppliers willing to power their venues, when contracts come up for renewal.

William Lees Jones, managing director of the JW Lees pub group, said, “we have publicans who are experiencing 300% plus increases in energy costs and some energy companies are refusing to even quote for supply. In some instances, tenants are giving us notice since their businesses do not stack up with energy at these costs. These are not just pubs but people’s homes and the hearts of the communities that they sit in.”
GNA