In an open letter, the BBPA has called on leadership candidates to meet with business leaders to secure urgent relief on energy costs and secure a long-term plan for hospitality to avoid losing businesses and jobs across the country. The BBPA has written to Conservative Party leadership hopefuls Liz Truss and Rishi Sunak to insist they convene a summit with business leaders to save pubs and other hospitality venues from closure should they become Prime Minister. In the face of rising energy bills, staff shortages and a cost-of-living crisis, the trade association has written to both candidates to call for a roundtable business leaders to be convened ‘at the earliest opportunity’ to ensure there is a plan for tackling the cost of doing business and a long-term strategy in place for hospitality. The letter comes shortly after leaders from across hospitality and the night-time industries, including the British Beer and Pub Association, called on Government to take immediate action on rising energy bills by introducing an energy cap for small businesses. Thanking both candidates for the support provided by the Government to the pub and brewing industry throughout the pandemic, the letter highlights how the next few months are likely to be more critical for the industry than periods of closures throughout 2020 and 2021. Chief Executive of the British Beer and Pub Association, Emma McClarkin said: “Our sector hangs in the balance, rising energy bills are crippling pubs across the country with only one in three turning a profit and that figure only likely to worsen as winter approaches. The situation is dire, what we are experiencing now is arguably worse than the pandemic because we are receiving absolutely no relief on out-of-control energy costs. “We need urgent action from the Government to save businesses and jobs in communities across the country, but we also need a long-term plan to ensure the health of the hospitality sector so it can continue to support the economic and social fabric of our country.” Earlier this summer the BBPA wrote to all candidates in the Conservative Leadership contest with a mini manifesto for brewing and pubs, outlining key asks of any new Prime Minister to ensure a thriving industry. Read the full letter.
Five organisations representing the UK hospitality sectors have today (15 August) joined forces to write an open letter to HM Government calling for urgent action on energy prices. The British Beer and Pub Association, UK Hospitality, Night-Time Industries Association, Music Venue Trust and The British Institute of Innkeeping have jointly created the letter, which highlights, “rocketing energy prices (becoming) a matter of existential emergency.” With hospitality operators facing average annual bill increases in the region of at least 300%, businesses and jobs in the sector are at grave risk, and the letter sets out the urgent need for the Government and the Conservative leadership contenders to outline a comprehensive support package for the sector. Emma McClarkin, Chief Executive of the British Beer and Pub Association said: “Rising energy bills are putting pubs in real jeopardy. Sudden, extreme price hikes are already forcing publicans to make tough choices, from reducing opening hours to cutting options on their menus. We are experiencing a perfect storm that is not only shrinking but eradicating profitability margins. We urgently need an energy price cap for small businesses before extortionate bills cripple pubs and we lose them forever in communities across the country.” Kate Nicholls, Chief Executive of UK Hospitality said: “Hundreds of hospitality businesses across the country are staring into an abyss of closure and possible failure, leading to thousands of job losses; so it’s now or never for Government help and support if this vital sector is to survive the extraordinary threats pushing much of it to the very brink of existence.” Mark Davyd, CEO of Music Venue Trust said: "After two incredibly difficult years where venues have had to fight for simple survival, it would be an extraordinary outcome to see them closed and permanently lost because of an energy market that is completely out of control and not fit for purpose. The Government must act to create a genuinely functioning market for energy services that can deliver supply at a reasonable cost or step in to create an affordable supply for businesses". Michael Kill, CEO NTIA said: "The Government cannot continue to understate the escalating crisis within the energy sector, the contraction of energy suppliers is compromising the free markets primary purpose of generating competitive rates and service levels. Limited competition has resulted in energy tariffs that are already unsustainable, and without the Government's intervention, businesses who have survived the pandemic, supported by public funding, will face further uncertainty, and in many cases, permanent closure." Steve Alton, CEO of the British Institute of Innkeeping said: “The majority of our members are single site operators, running small, independent businesses at the heart of their communities. Without urgent action from Government, these vital spaces for social connection, supporting local jobs, supply chains and community groups, will drown under the weight of the rising cost of doing business. In many cases, the impact on their businesses is now worse than that of the pandemic, which has already left them with average debts of £40k per pub. The stark reality of the challenges now facing them cannot be underestimated. Government must act now to ensure we don’t lose these essential local community hubs forever.” The open letter to HM Government is as follows: An Open Letter to HM Government Pubs, restaurants, music venues, nightclubs, hotels and wider hospitality have reached the point where the conditions for trading are so prohibitive that many venues are already reducing the hours they open their doors. Others are confronted with the threat of permanent closure. With chronic challenges in the supply chain, labour shortages, interest rates and inflation, rocketing energy prices have become a matter of existential emergency for businesses in our sector. Hospitality operators face average annual bill increases in the region of at least 300%, putting at risk businesses and jobs. It is also increasingly clear that a significant number of energy providers have withdrawn service provision from the Hospitality market altogether. The primary purpose of a free market for energy supply to businesses is to create competition, which leads to improved services, competitive rates, resilient suppliers, and the ability to invest in long term and sustainable solutions to energy demand. In the Hospitality sector, there is unequivocal evidence that this primary purpose is failing. On Friday, the Government saw fit to declare a drought, in the face of inarguable evidence that weather conditions had caused a threat to the nation. The energy crisis is no less of a threat and deserves similar attention. Not all businesses will be able to survive this onslaught, and those that can will be closely considering how they can keep their costs down just to stay afloat. Hospitality provides 10% of jobs and 5% of GDP. It can be a powerful driver of economic recovery and growth for the nation, but it urgently needs a kick start. Business and consumer confidence is suffering, and we urgently need the Government and the leadership contenders to outline a support package for the sector. We urge you not to allow the stasis of party politics to stifle the urgent delivery of action on energy.
Tickets are now available for the British Beer and Pub Association’s Annual Dinner as it returns for another year on 12th October at the Leonardo Royal Hotel in London. The yearly event will bring together leaders from across the brewing and pub industry, parliamentarians and the media to celebrate the sector and the outstanding individuals and businesses that contribute to it. After an incredibly difficult two years, the event will recognise the resilience of the sector, highlight impressive achievements in spite of trying times and look ahead to what’s next for our breweries and pubs. Emma McClarkin, Chief Executive of the British Beer and Pub Association said: “We are really looking forward to welcoming our members to our Annual Dinner where we’ll be celebrating the brilliant achievements of those that work hard to help our sector thrive. We hope to see as many of our members, partners and friends for what is set to be a wonderful evening.” The evening will include entertainment, a three course meal, awards ceremony and charity auction. A range of tickets are available to purchase for members and associate members. Don't miss out, visit our ticketing site to purchase yours now! If you have any queries please contact Sophie on shall@beerandpub.com
We champion issues that matter to the beer and pub industry. These are causes our members are passionate about; whether it’s promoting beer as the nation’s drink, or campaigning against increases to beer duty and businesses rates that are so damaging to community pubs.