"Mass failure" of pubs predicted as energy bill support ends
The British Beer and Pub Association is calling for help after four West Country pubs closed in one day
Last updated 31st Mar 2023
We're facing a wave of pub closures across the West Country if more isn't done to help with their costs.
That's what we're hearing from an industry expert, after four pubs closed simultaneously in the Bedminster area of Bristol this week.
Signs appeared on The Albert Lounge, The Black Cat, The London Inn and The Tap & Barrel on Thursday (March 29) all saying they were closed until further notice.
In posts shared online, some of them add increased energy bills are to blame.
"It is with regret, we inform you, that as of today 29th March 2023, the Albert lounge has ceased trading," a post on The Albert Lounge's Facebook page reads.
"The decision has been taken predominantly due to increased price rises with energy rates and all of our suppliers.
"On behalf of the Albert team management, I would like to take this opportunity to thank you for your continued loyalty for the past seven years.
"Without your support, our success would not have been possible, however under the current business climate, we have been left with no option but to close down."
Speaking to us, the chief executive of the British Beer and Pub Association (BBPA) said 50 pubs are closing every month across the UK on average right now.
"Pubs across the country really are on a cliff edge," Emma McClarkin said.
To date businesses including pubs have been eligible for some support with their bills through the Energy Bill Relief Scheme.
It offers businesses a lower price for gas or electricity through a government discount.
However, the scheme is due to expire tomorrow, on Saturday for all but a few sectors, meaning many businesses could see their bills sky rocket.
"With the energy support that's coming off at the end of March, people are seeing their bills tripling and having to find a way to increase their turnover by 11 per cent overnight and it's simply impossible...
"That is why we're seeing so many pubs take that decision that they cannot afford to stay open any more, and therefore they're closing their doors."
More pubs closed in 2022 than at any time during the pandemic, the BBPA says.
"This is an acceleration of business failure that we're seeing, because of that cost inflation, because of the situation on supply chains...but it's particularly on energy, those sky high costs and contracts that they're locked into that they cannot get out of, that we desperately need the government to take action on."
The BBPA wants energy suppliers to give pubs a window in which they can renegotiate their bills, to help them survive.
Others are asking for different solutions.
Joe Cussens runs the Bath Pub Company and is among more than 17,000 people who have signed a petition, calling on the government to reduce VAT for hospitality businesses from 20 to 10 per cent.
"If we value and want to keep pubs, we need to have a serious conversation about the tax they face," he said in a recent Tweet.
Chancellor Jeremy Hunt has previously warned that the level of government help, both for businesses and individuals was "unsustainably expensive".