EBRS update to be announced next week
Chancellor Jeremy Hunt yesterday (Wednesday 4 January) met with businesses leaders, including representatives from the British Beer & Pub Association (BBPA) and UKHopsitality (UKH), to discuss the issue, with UKH stating the meeting was "very positive".
Hunt praised the reliance of businesses in the face of the unprecedented energy crisis but claimed the level of support currently being provided was “unsustainably expensive” and that extending the scheme at current levels could cost tens of billions of pounds.
Biggest threat
BBPA chief executive Emma McClarkin said: “We met with the Chancellor 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.
“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.
“We urge the Chancellor to extend the scheme or risk losing businesses across the UK that mean so much to so many.”
Very worrying
This follows recent reports the Government could potentially halve the energy support currently offered to businesses when the existing scheme expires in March in a bid to provide “longer-term affordability”.
Additionally, the Campaign For Real Ale (CAMRA) warmed this would be “very worrying” for many operators and could result in more closures for the sector.
CAMRA chairman Nik Antona said: “The cost of goods and employing staff continues to rocket and customers are tightening their belts. Many businesses wonder how they will be able to turn a profit if energy bill support is halved.
“If this cut is announced next week, then the Chancellor’s Budget in March will need to provide extra support for hospitality businesses if we are to avoid the nation’s beloved pubs and breweries facing the threat of permanent closure."
