Thousands of pubs in the United Kingdom may close, according to an industry association.
The BBPA says that closings in the hospitality industry could cost 25,000 jobs.
The British Beer and Pub Association (BBPA) has warned that Britain’s hospitality industry could lose thousands of jobs because of rising energy costs. It has also asked the government to throw the industry a lifeline.
According to a report from the British Beer and Pub Association (BBPA) on Wednesday, which used data from Oxford Economics, another 2,000 pubs could close, putting 25,000 jobs at risk. According to the research, on-trade beer sales will drop by 9% between 2023 and 2024. This means that 1 million barrels of beer, or 288 million pints, will be sold less.
“The BBPA is calling on the government to show in the spring budget that it understands how important pubs and breweries are to their communities and the pressures they are under by delivering a plan for sustainable growth with fair, modernised tax rates and a focus on skills and training that pubs and breweries need to thrive,” the association said.
In addition, it asked the chancellor to keep duty rates the same, raise the discount for draught beer sold in bars by a significant amount, and start lowering the rate for lower-strength beers on August 1.
The British government started the Energy Bill Relief Scheme in September 2022. It is said to have given businesses £18 billion ($22 billion) to help with rising energy costs. But the plan is set to end in March, and according to reports, a new support package will cut funding to £5.5 billion ($6.5 billion).
Emma McClarkin, the chief executive of the BBPA, said, “After almost three years of extremely tough trading conditions due to lockdowns, an energy crisis, supply chain disruptions, and other things, now is a make-or-break moment to save our pubs and breweries from failing in the years to come.” We need the government to act now or risk losing something very special for good.”