New research has revealed that more than 70% of pubs do not expect to survive the winter if nothing is done to ease energy costs.
With energy prices soaring in the UK - and set to go even higher before the end of the year - almost three quarters of pubs could be forced to close their doors for good unless help is made available.
Research carried out by the Morning Advertiser, revealed that more than 70% of operators do not think they will make it through the winter without intervention from the government.
More than 65% of respondents said their utility costs had more than doubled, while 30% of pub owners said they had trebled. A further 8% said their utility bills had increased by a staggering 500%.
Now, the Society of Independent Brewers (SIBA) is calling on the UK Government to step in and help out.
In a letter to the chancellor Nadhim Zahawi, co-signed by the Campaign for Real Ale (CAMRA), SIBA urged the government to act now as the industry faces ‘grave uncertainty’.
“We have entered one of the most challenging times for the brewing sector. Small brewers are reporting that their energy bills are doubling or trebling, putting their future ability to brew at risk," the letter reads.
Crisis to last another three years
And fears are growing that the energy crisis could last another three years.
The Telegraph reports today that the National Grid is now drawing up emergency plans to reduce power demand from factories across Britain.
Large industrial companies would be paid to cut gas usage every winter until 2025 as National Grid attempts to avoid uncontrolled blackouts that would cause "a major economic and societal impact".
National Grid's draft proposals recommend making payments of up to £5million this winter for factories that cut production if the gas crisis escalates because of the war in Ukraine.
It has warned that factory owners face compulsory gas rationing if they do not put in bids for the so-called Demand Side Response (DSR) payments.
Threat to viable firms
Meanwhile, the UK Government is today being warned that viable firms could collapse unless it provides urgent help to support companies and consumers through the energy crisis.
Business groups say it is crucial to use "tried and tested" methods deployed during the Covid-19 pandemic so that help can be rolled out swiftly.
The CBI states that, with one in three employers expecting soaring energy bills to act as a barrier to growth, ministers must "explore all options for navigating the crisis".
The Times reports that the business organisation has now set out a plan to support vulnerable consumers and businesses.
It called for:
- More government support targeted at the most vulnerable households.
- Pandemic-style "time to pay" leniency from HM Revenue & Customs over tax bills.
- A freeze in business rates.
- An "ambitious programme" to improve energy efficiency by giving people upfront financial support to insulate their homes.
- More aid for energy-intensive industries to increase their efficiency.
Matthew Fell, chief policy director at the CBI, said: "We can't afford to lose sight of the fact that many viable businesses are under pressure and could easily tip into distress without action. Decisive action now will give firms headroom on cashflow and prevent a short-term crunch becoming a longer-term crisis."