Since the beginning of the energy crisis, members of the trade organisations have faced a raft of business-critical challenges, with 50% being forced into contracts between July and December 2022, in an uncompetitive market when energy prices were at their highest.
Hospitality trade bodies, the British Beer & Pub Association (BBPA), UKHospitality (UKH) and the British Institute of Innkeeping (BII) have today written to Amanda Solloway MP, the Minister for Energy Consumers and Affordability, calling for urgent Government support for hospitality businesses on the brink of collapse
Ofgem, the industry regulator has investigated evidence from hundreds of pubs and hospitality businesses, showing the unfair nature and length of contracts, sky high standing charges and management fees, and aggressive sales tactics by some energy suppliers, but the action taken so far has been too little, and for many will be far too late.
A spokesperson for the trade bodies stated:
“Following any meaningful Government support tailing off at the end of March, operators now face bills between three and four times higher than in 2021, locked into contracts that are destroying their otherwise viable and vibrant businesses.
“We have been engaging with Government Ministers and officials, as well as Ofgem, for over a year now, sharing the often-immoral behaviour of energy suppliers, whose actions have plunged pubs and hospitality businesses into debt and uncertainty. Domestic customers have been protected to some extent, but small businesses supporting families and communities have been left exposed to untenable costs and contracts, threatening livelihoods the length and breadth of the UK.
“Ofgem’s limited powers leave it unable to intervene in contracts between these suppliers and hospitality businesses. We are calling urgently on Government to step in and take action to save essential community hubs and thousands of jobs from being lost forever.”
ENDS
Notes to Editor
About the British Beer & Pub Association
The BBPA represents UK companies which between them brew over 90% of the beer sold in the UK and own 20,000 pubs.
Our members include international companies, national and local brewers and pub businesses operating managed and tenanted pubs in cities, towns and villages across the country.
These businesses are at the heart of communities and local economies and include family businesses who have been brewing beer and running pubs for hundreds of years alongside emerging brewers and pub operators.
- The UK’s beer and pub industry supports close to 940,000 jobs
- The industry adds £26.2billion to the UK’s economy each year
For more information or to arrange an interview contact Jessie Powell on jpowell@beerandpub.com.
About UKHospitality
- UKHospitality is the authoritative voice for over 750 companies operating around 100,000 venues in a sector that employed 3.2 million people prior to COVID.
- The body speaks on behalf of a wide range of leisure and ‘out-of-home’ businesses, from FTSE 100 enterprises to niche groups and independent single-site operators, as well as 6,000 affiliated operators.
- For the first time, the sector has a single voice bringing together businesses from all aspects of hospitality: coffee shops, hotels, serviced apartments, pubs, restaurants, leisure parks, nightclubs, contract caterers, entertainment, wedding venues, holiday homes, bowling alleys and visitor attractions
- Engaging with government, the media and the public, UKHospitality works to develop a robust case on how to unlock the industry’s full potential as the biggest engine for growth in the economy and ensure that the industry’s needs are effectively represented
- The sector creates £130bn in economic activity and generates £39bn of tax for the Exchequer, funding vital services
- Hospitality represents 10% of UK employment, 6% of businesses and 5% of GDP
- Hospitality is the 3rd largest private sector employer in the UK; double the size of financial services and bigger than automotive, pharmaceuticals and aerospace combined
For more information or to request an interview, contact UKHospitality’s Communications Manager Sam Ette on 07598 402163 or sette@ukhospitality.org.uk.
About the British Institute of Innkeeping:
The BII is the leading independent licensee support organisation for individuals working in hospitality, with 10,000 individual members running premises across the UK – predominantly tenanted, leased, managed and freehold pubs. The organisation provides expert helplines, online business support, and guidance on key industry issues, and savings on a range of supply deals for its members, keeping pubs thriving in the heart of every community.
For further information please contact:
Molly Davis
Head of Communications
Email: molly.davis@bii.org
Mob: 07539 377752
Contact: Jessie Powell, BBPA, jpowell@beerandpub.com // Sam Ette, UKH, sette@ukhospitality.org.uk // Molly Davis, BII, molly.davis@bii.org