Soaring energy bills could put 7 in 10 UK pubs out of business: Report

By Ahmet Gurhan Kartal

LONDON (AA) – Nearly 70% of pubs in the UK may face closure, due to skyrocketing energy bills if the government fails to provide an urgent relief package soon.

Sacha Lord, head of the Night Time Industries Association, urged the government to act without delay as businesses remain in the dark over their future, according to a report by local newspaper The Independent.

The new government of Prime Minister Liz Truss last week said bills of households will be frozen until 2024, but did not reveal a detailed plan for businesses, promising six months of “equivalent” relief.

Some pubs have already opted to shut shop due to surging energy costs.

One of the latest was Brighton Beer Dispensary, a popular haunt in the seaside town of Brighton.

In an announcement last weekend, the management said one of the reasons for the decision was spiraling energy costs, according to The Argus, a local paper in Brighton.

“With the rise of electricity bills, Brexit nonsense, and other issues, we just can’t see ourselves surviving,” read a post on the pub’s Facebook page.

In a letter to the government before Truss took over from Boris Johnson, members of the board of the British Beer and Pub Association called for a pause on levies, the introduction of an energy price cap for small businesses, and additional grant support for pubs.

“Without swift and substantial intervention from the government there is no doubt we will witness a huge number of pubs close their doors for good, leaving individuals without jobs during a cost-of-living crisis and communities without their social heartbeat,” the letter said.

Truss unveiled a plan last week to deal with the energy crisis, pledging to freeze electricity and gas bills so that the average household pays no more than £2,500 ($2,163) per year.

The freeze would last two years and save families £1,000 on average.

Her plan includes a separate six-month scheme of the same support for businesses, schools, and hospitals, while measures for the hospitality sector are to be announced at a later date.

The cost of the government scheme is reported to be around £100 billion or more.

Later this month, new Chancellor Kwasi Kwarteng will share details of the expenses and how the government intends to meet the costs.