More Shropshire pubs face last orders over 'horrific' energy and fuel costs
More than 30 pubs have shut in Shropshire during and since the pandemic say campaigners, which others changing hands as licensees could no longer make them pay.
Grace Goodlad, landlady of The Bailey Head in Oswestry, warned that more Shropshire pubs will face last orders if "horrific" spiralling energy and fuel costs aren't dealt with.
The industry says that the coronavirus pandemic placed extraordinary pressure on pubs and the hospitality sector as national lockdowns forced closures, while demand took a hit as punters chose to stay at home to avoid catching the virus.
Shrewsbury and West Shropshire Camra, the real ale campaigning group, said it knew of 31 pubs lost in the past three years.
Data from real estate advisers Altus Group shows there are 415 pubs in Shropshire, down from 423 in March 2020, before the first coronavirus lockdown. In Telford and Wrekin there are now 129 pubs, down from 136 before the lockdown.
Altus Group said pubs could have fared worse during the pandemic, and instead proved “remarkably resilient” during the economic turbulence.
However, its UK president Robert Hayton warned that they are now dealing with “soaring energy costs, inflationary pressures and tax rises” which may force more pubs to close their doors.
Pub numbers across England and Wales have dropped below 40,000 for the first time, with 200 lost between the end of 2021 and the end of June.
Many have been demolished or turned into residential and office space.
Norrie Porter from Shrewsbury and West Shropshire Camra said the figures hit the full toll on the licensed trade.
“Our figures show 31 pubs have gone completely or are closed long term in the branch area,” he said.
“But that does not taken into account the pubs where tenants have had to hand back the pub after failing to make ends meet. Many have lost their livelihood.”
He said of those pubs that are surviving, many are now operating on reduced hours such as evenings only or opening only part of the week.
“When there is any restriction imposed on pubs, going back all the way to the smoking ban, we see a downturn in pub trade. During lockdown people could not go to the pub and many have not returned.”
“Taxes and restrictions on pubs are so much higher than in supermarkets and so more and more people are drinking at home.”
Research by the British Beer and Pub Association, British Institute of Innkeeping and UKHospitality shows only 37 per cent of hospitality businesses are turning a profit at present.
The rising costs of energy, goods and labour have been blamed for falling profits, and the industry is now calling on the Government to provide more support.
Mr Porter said: “Camra is campaigning for a cut in VAT for the hospitality industry.”
At The Bailey Head in Oswestry, landlady Grace Goodlad has seen her energy bills double since the start of the year.
Venues are facing the full force of energy and fuel costs, and commercial premises aren't getting the support that households are with fuel bills.
Grace said costs are "crippling".
"Fuel prices have more than doubled for us," she said. "It's horrific. That's a massive increase.
"Our brewers have put their prices up between eight and 15 per cent because of the price of ingredients. If the price of barley and hops goes up, the price of beer goes up. Even things like beer gas have doubled in the last few years."
She also said the war in Ukraine was having an impact on packaging solutions.
"Henstone Distillery used bottles from Ukraine, but there's a war on so that's not available to them any more. They're trying to control the prices, but they're under pressure as well. There are multiple factors at play."
She added: "This week I've had four customers not in because they've got Covid. Most people wouldn't want to go to the pub to give it to their mates."
Asked if she expected more pubs to close unless something is done to tackle costs, she said: "I'd have thought so. The Bastion Alehouse closed six or seven weeks ago. It has been a very lean two years.
"If you haven't got money for your electric bill, you're not going to go down the pub."
Rising costs of energy, goods and labour have been blamed for falling profits, and the industry is now calling on the Government to provide more support.
Emma McClarkin, chief executive of the British Beer and Pub Association, said: “When pubs are forced to close it’s a huge loss to the local community, and these numbers paint a devastating picture of how pubs are being lost in villages, towns and cities across the country."
She said pubs face the challenge of extreme rising costs and that it was essential they receive relief to ease these pressures.
A spokesperson for the Department for Business, Energy, and Industrial Strategy said the Government was supporting pubs across the UK with 50 per cent business rates relief, freezing alcohol duty rates on beer, cider, wine and spirits and increasing the employment allowance.
"This is in addition to the billions in grants and loans offered throughout the pandemic," they added.
