1 in 3 pubs reducing opening days to mitigate energy costs

A joint survey​ of the BII, UKHospitality, the British Beer & Pub Association (BBPA) and Hospitality Ulster members highlighted the frailty of businesses.

Four in 10 (43%) of BII members reported they weren’t making a profit and a third had no cash reserves.

Furthermore, 60% of firms were reducing opening times and a third cutting opening days in a bid to mitigate the rocketing utility costs.

Huge inflationary rises

BII chief executive officer Steve Alton has written to the Chancellor, ahead of the Spring Budget, which traditionally takes place in March, calling for support.

“Our nation’s pubs have been devastated by the huge inflationary rises across all areas of their businesses and in particular, energy costs, which now represents the biggest single threat to their survival," he said.

“Half (50%) of respondents to the joint survey have had to renew their energy contracts in the past six months of 2022 at a time when prices were unfairly high in a non-competitive market.

“It is vital our pubs are recognised as the essential businesses they are, at the heart of their communities, providing not just tangible social value but also skilled and flexible local employment.”

Alton outlined how the industry helps businesses outside of hospitality and warned of “widespread failure” if the Government doesn’t step in.

Widespread business failure

He added: “We offer employment opportunities open to all with the ability to deliver essential business skills, to build skilled jobs and careers, in our sector and beyond.

“They need and deserve support and investment. Without it, we will see widespread business failure on a huge scale.”

The trade body highlighted a number of ways in which the Government can support the sector amid the ongoing headwinds.

Alton said: “We are calling on the Chancellor to provide that support with a sector specific reduction in VAT and a long-term business rate reform through a reduction in the rates multiplier for our sector, recognising our unique social value in every community.

“We are also asking for [the] Government to deliver fair and reasonable energy costs for pubs and an ability to re-contract poor and unfair energy deals secured in 2022.

“These measures, alongside an enhanced draught duty reduction for beer served in pubs with full delivery of the Alcohol Duty Reform including a freeze in beer duty, would ensure our members and the wider hospitality sector can deliver the growth, employment and social value needed in towns and cities across the UK.”

This follows fellow trade body the BBPA also urging the Government to 'invest in the sector or lose pubs and breweries forever​'.