More than 150 pubs closed last year following soaring energy costs
New analysis has revealed that more than150 pubs in England and Wales closed in the first three months of 2023.
The findings were published by commercial property firm Altus Group who examined official government data, citing that an increase in energy was the biggest driver for closures.
The group revealed that 51 pubs were lost each month in the first quarter of 2023 compared to 32 pubs a month disappearing on average last year.
Today’s findings take the overall number of pubs in England and Wales by the end of March, including those vacant and being offered to let, down to 39,634.
With the government’s energy support package being scaled back this month, operators across the UK food and drink industry fear the rate of closure will only accelerate in the future.
5,000 hospitality businesses closed for good last year and already we are seeing a higher failure rate in the first quarter due to soaring bills - on average a 90% hike this month. We need urgent action to tackle high prices too many are locked into https://t.co/LbFhzrf4Zt
— Kate Nicholls OBE (@UKHospKate) April 11, 2023
Discussing the news on Twitter, Kate Nicholls CEO of the UKHospitality, tweeted: “5,000 hospitality businesses closed for good last year and already we are seeing a higher failure rate in the first quarter due to soaring bills - on average a 90% hike this month. We need urgent action to tackle high prices too many are locked into.”
The findings from Altus Group come as soaring energy costs, rising food prices and weakened consumer demand pile pressure on landlords.
Addressing fears over rising costs and continued closures, The British Beer and Pub Association warned that the average energy bill for a pub could rise by £18,400 a year from this month with the Energy Bill Relief Scheme ending.
The end of the Government energy support for non-households’ energy bills is set to wipe out the benefit seen from reductions to property taxes, according to the real estate advisory firm.
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