British pub owners fear for their existence. Record high inflation, rising energy prices and delivery bottlenecks are a “doomsday scenario,” says one of those affected. The industry is turning to the government with a call for help.
A piece of our very own culture is in danger of disappearing from the British streets forever. The number of pubs in the UK is shrinking at a breathtaking pace. According to industry surveys, more than 70 percent of pub owners no longer expect to survive the winter if the government in London does not take measures to reduce energy costs.
In the wake of the pandemic and associated lockdowns, the hospitality industry is suffering from record high inflation. In addition, the kingdom is still feeling the consequences of Brexit, which have triggered a colossal shortage of staff in the catering and logistics sectors. The British “Guardian” quotes the managing director of the Frisco Group, Heath Ball, who runs three pubs in the south-east of England, as saying that the pubs are faced with a “doomsday scenario”.
The increased energy bills meant “great uncertainty” for the entire industry, the independent brewers (Society of Independent Brewers – SIBA) turned to the British interim finance minister Nadhim Zahawi this week, from which the newspaper quoted. In addition to the rising energy costs, there would also be a decline in sales. Consumer prices in the UK had risen above 10 percent in July. The British save. There is no end in sight to the inflation spiral.
Small breweries complain about energy bills that are twice or three times as high, which threatens their ability to brew at all, the letter said. To make matters worse, there is a lack of material and raw materials such as barrels, cans and CO2 gas, as well as a poor hop harvest, which is driving up prices in all areas.
The government must intervene to avert further damage to breweries and pub operators. Measures being called for include cuts in VAT and corporate tax, caps on energy prices – at least for small businesses – and subsidies for renewable technologies to reduce pub energy use.
The brewers sum up the situation as one of “the most difficult times for the sector”. It is said to be made worse by the fact that there are utilities who are no longer offering them new contracts, fearing the breweries and pubs may not be able to pay their bills. According to official information, 200 breweries have had to close since the outbreak of the corona pandemic.
Since pubs are considered the soul of the “community” in the communities, the downsizing process is of particular importance. In the pubs there is a chance for socializing. Friends and families meet here for a Sunday roast, and colleagues and sports groups enjoy a beer together after work.
The think tank Localis already pointed out the central role of pubs for people last year. For many, the prospect of spending time with friends and neighbors is the motivation to leave home. Loneliness and social isolation would be avoided. Localis warned that if pubs were to be lost, especially in rural areas, this could endanger the social fabric.
Inflation in Great Britain is much more severe than in other industrialized nations as a result of Brexit. Researchers from the University of York estimate that half of British households will experience fuel poverty this coming winter. The British health sector has also warned of humanitarian crises as the cost of living soars. Civil unrest and boycotts are also a possible scenario, according to the “Wirtschaftswoche”.
