Not before time, the government is to provide an update on the energy relief scheme next week, after a meeting with leaders from the hospitality sector.
“We met with the chancellor today to underline the challenges the industry face and the critical importance of extending the energy relief support to avoid significant business failure and the closure of many pubs and brewers,” said Emma McClarkin, chief executive of the British Beer and Pub Association.
“Without extended support at close to current levels, pubs and brewers in communities across the country could be lost for good.
““Energy costs are the single biggest threat to our industry right now. The failure to safeguard pubs and breweries from price increases come April will be the last straw for businesses who have been struggling for three years to remain solvent and serving their communities.”
She added: “We urge the chancellor to extend the scheme or risk losing businesses across the UK that mean so much to so many.”
Without the update, businesses can’t plan for the months ahead. Some pubs are closed because those that might want to take them over can’t develop a business plan without knowing the government’s direction of travel on energy charges.
Meanwhile, energy is not the only issue on the minds of hospitality operators. The impact of rail strikes has cost the sector a total of £2.5bn in lost sales since industrial action began in June last year, according to UKHospitality.
And in a piece in The Guardian, UKHospitality chief executive Kate Nicholls revealed that vacancy rates in pubs are still running at about 9%. This is after the ‘double whammy’ of Brexit and Covid.
