The increased prices for gas and electricity are causing existential difficulties for pubs in Great Britain, which have already been hit by the pandemic. According to an open letter from the British Beer and Pub Association on Tuesday, pubs are struggling in some cases with their energy costs quadrupling compared to pre-pandemic levels.
The association is therefore demanding quick help from the government. “Without prompt and substantial government intervention, a huge number of pubs will have to close their doors forever,” said the letter, which was also signed by the chief executives of several major pub chains and breweries.
Supply chain issues
According to the association, the entire supply chain is under a lot of pressure. Among other things, a producer of carbon dioxide, which is important for beer production, has announced that it is going out of business due to the difficult market conditions.
Unlike households, there is no price cap on electricity and gas for businesses in the UK. The British government is currently unable to act fully due to the ongoing race to succeed Prime Minister Boris Johnson.
The association calls for an energy price cap for smaller companies. “Without immediate Government support to the industry, we face the prospect of many pubs not being able to pay their bills, jobs being lost and many venues closing across the country,” said Greene King pub chain chief Nick Mackenzie according to notification. “That would mean all the effort to keep pubs afloat during the pandemic would have been in vain.”
