90% of operators seeing energy quotes double
The information from the British Institute of Innkeeping (BII) followed research from The Morning Advertiser, which revealed 70% of operators were not expecting to survive this winter without Government help on energy bills.
The BII’s flash poll found just one in four of its members are currently in a fixed price contract.
While 90% of respondents said their quotes were at least 100% more than what they were paying now, almost two thirds of those are having hikes of over 300% and one in two had been quoted four times more.
Furthermore, one in three of those who were trying to secure a contract reported not being able to.
Business failure
As a result of the hikes, the BII predicted half of firms will now be loss making and one third will fail in the next 90 days.
BII CEO Steve Alton repeated calls for a price cap on the rising bills faced by pubs.
He said: “We have been sharing the data from our members with officials and ministers in Government for many months now, leaving them in no doubt of the impact of increasing pressures of cost of business inflation and specifically the escalating energy crisis.
“The effect of these unprecedented energy price rises on our nations’ pubs has now reached a critical level. Behind these stark headlines, the reality for individual operators running essential businesses connecting people at the heart of their communities is simply devastating.
“This is not just about business failure and the loss of livelihoods for our members, it is the loss of jobs in local communities, homes for families and the vital lifeline that pubs provide for those facing isolation and loneliness in villages, towns and cities across the UK.”
He outlined how the demand from consumers returning to pubs after the vital role the sector played in supporting communities in the pandemic, showed how important it is to reconnect with friends and family.
Meaningful cap
Alton added: “If [the] Government does not act rapidly to support these small businesses that not only do so much for their communities, but also provide vital business to local suppliers and brewers as well as significant tax revenues into the Treasury, they will be lost, in some cases forever.
“We are calling on [the] Government to provide a meaningful cap for business energy, as well as grant support for our essential, safe spaces for all across the UK. We are also calling for at least a 50% reduction in business rates for 23/24, as well as a significant cut in duty for draught beer and cider of at least 20% on containers of 20l or more, to allow them to begin to recover their businesses.
“These measures alongside a reduced rate of VAT, encouraging consumers to continue to visit pubs during this cost-of-living crisis will be essential to ensure their survival.”
He went on to say without support, the alternative is "simply unthinkable" with the economical impact "enormous" and the long-term damage to the sector "devastating".
