Why British pubs need urgent help with rising energy costs - Emma McClarkin

Following two of the most turbulent years pubs and brewers have ever seen, our industry now finds itself poised once more on the brink of mass closures as rocketing energy costs are forcing business owners to think seriously about whether they can afford to keep their doors open.

It is no exaggeration to say the threat we are facing now could be more detrimental to our nation’s pubs than the pandemic.

And this isn’t a new issue, it’s been steadily building with publicans trying desperately to make ends meet in any way they can for months.

As early as April this year pubs were reporting 300 per cent increases in their energy bills, and that’s in warmer months.

This week a city centre pub in York was forced to close after monthly energy payments rose from £900 a month to £2,500. This is one of countless examples of sudden spikes in energy bills crippling pubs.

And when combined with chronic challenges in the supply chain, labour shortages and customers who are thinking more carefully than ever about where they spend their money, pubs simply can’t remain viable because their profitability margins are being eradicated.

Rising energy prices have come at a time when the sector had just begun to piece together their recovery from the pandemic, with many of our venues still carrying debt from long enforced periods of closure.

Hundreds of pubs were also forced to close for good following the pandemic, a phenomenon that unfolded before the public’s eyes after periods of lockdown.

But extortionate energy bills will be a silent killer of many more pubs if we don’t act now, with extreme energy bills arriving through pubs letterboxes across the country.

I spoke to one publican in Thornton-Le-Dale in North Yorkshire earlier this year who already had serious concerns about how she was going to afford to heat her 18th Century stone building through the winter.

After serving hot meals and providing solace for many in a difficult winter last year, she was adamant her pub would remain a welcoming space for locals this coming winter but was nervous about how she would balance the books.

And this will be the reality in towns and villages across Yorkshire as publicans try to plan ahead and keep doors open for their communities. And the impact is not only being felt by local pubs and smaller businesses but also larger brewers and retailers, as BrewDog announced this week it is closing six of its sites because of the lack of support in the face of the unprecedented energy cost rises.

One of our nation’s most iconic and well-loved sectors is being left to try and sail in an endless storm where the waves are only getting stronger. And it has become very clear this storm will not pass on its own.

If we want to enjoy pubs in the future, we need the Government to introduce a targeted package of support for the hospitality sector now. We are calling for a price cap for small businesses alongside grant support.

Currently the energy price cap is only in place for domestic users, we need a similar cap for small businesses before irreversible damage is done.

Pubs truly are the beating heart of the communities they serve.

They are the place we laugh, the place we cry, the place we can be together. If they were to disappear, we would be trying to invent them again tomorrow. We simply cannot afford to lose them.

When combined with the world class beer brewed in the United Kingdom, pubs have long been recognised as part of the identity of our country and there are countless iconic pubs across Yorkshire that contribute to this identity. With the right investment and support these pubs and brewers can continue in their role as community hubs, employers, innovators, tourist attractions and more.

Not only are they steeped in heritage and history, they are innovating and planning for a future where they continue to serve our country’s diverse communities and embrace opportunities to be sustainable.

As pubs welcomed people back after the pandemic it was clear from people’s faces and conversations that they had been missed, they are rare spaces that are open to all.

They are an important part of our past, and I don’t want to imagine a Britain where they’re not part of our future.

If the Government is serious about saving a national treasure that so many hold dear, we need swift action from the new Prime Minister as soon as they are the through the door of Number 10, before it is too late.

Emma McClarkin is chief executive of the British Beer and Pub Association