Pubs are the heart of British social life and they form a crucial part of the community as well as providing jobs for the economy. But this segment of the hospitality industry is under serious threat.
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As per The Guardian, with energy costs being at an all-time high and expected to rise even further, about 70% of British pubs and independent breweries are likely not to be able to survive the winter. On Tuesday, Society of Independent Brewers wrote a letter to the chancellor, Nadhim Zahawi, informing him of their plight and the urgent need for government aid.
‘Doomsday scenario’ for pubs and independent brewers
The Society of Independent Brewers in their letter to the chancellor, said
We have entered one of the most challenging times for the brewing sector
Further saying,
Small brewers are reporting that their energy bills are doubling or trebling, putting their future ability to brew at risk.
They stated that while surging energy bills were the main reason for the seriousness of the situation, this has been worsened by the fact that many households are trying to save money. In addition, there are also shortages of kegs, cans and CO2 gas, as well as the prices of goods going up due to a poor harvest this year.
The report also stated that 30% of pub and brewery operators have seen their utility cost double, while one operator said that his energy bill had shot up from 14p to 83p per units.
Independent breweries and pubs are asking the government to step in
The current statistics follows right behind another report by The Guardian last month about the disheartening state of British pubs. It stated that the number of pubs and breweries are at a record low numbers in England and Wales this year.
As per the report, the total number of pubs fell down to 40,000 pubs in 2022, which is a fall of more than 7000 compared to 10 years ago. The current news has further highlighted the worsening situation for this segment of the economy.
The government has been asked to step in and keep the situation from worsening, by offering VAT reduction, caps on energy prices for small businesses and grants for renewable technology to help cut down on energy use and cost.
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