Wigan bar owner warns of 'ghost towns' if Government doesn't help hospitality sector
Tony Callaghan, who owns bars across the North West, is urging the government to save the hospitality sector from 'unfeasible' cost increases
Last updated 5th Jan 2024
A Wigan bar owner is urging the government to do more to support the hospitality sector to stop our high streets becoming 'ghost towns'.
Bar chain tycoon Tony Callaghan is warning that businesses will go under if they are not helped with their costs.
Tony tells that across his 19 bars across Wigan, Yorkshire, Cheshire and the North West his electricity bill has risen by almost a quarter of a million pounds.
"My electricity last year went up by £223,000.
"Trying to make it back is a killer for some people, fortunately we've been able to survive it but everything, the cost of the electricity, the gas its crazy."
He added: "We were paying 23p per kilowatt for electricity, it went to 98p per kilowatt.
"You can only pay so much for electricity and small businesses, when they get an increase like that, they've no chance."
"The shops are closing, so if the hospitality starts closing we're going to have big ghost towns, we don't want it."
It is not only the cost of energy that is hurting businesses, Tony says costs are rising in every direction: "Its very very stressful, we employ around 300 people and our people are struggling with the economic crisis we are in.
"Its whenever we get any products in each week, the price goes up."
"You know all you want to do is earn an honest crust but its getting harder and harder and harder as each week goes by."
In a statement a government spokesperson said: “We recently extended measures to support pubs and hospitality, including offering a 75% discount on business rates up to £110,000 and providing tax relief for the sector worth nearly £2.4 billion.
“We have also frozen alcohol duty until August 2024 and through the Brexit Pubs Guarantee we remain committed to ensuring there will always be a lower duty rate for draught products.”