Cost of living: Pub sector expert warns of threat to small business

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Campaign For Pubs’ committee member Victoria MacDonald told Mike Graham on TalkTV that landlords are having to try to keep their establishments running with “no light at the end of the tunnel” as they deal with uncapped energy bills and a soaring inflation rate. Ms MacDonald described the situation facing pub owners and restaurateurs as “absolutely horrendous”, with property “vultures” circling and looking to swoop in on failing businesses.  

Mr Graham said: “[There are] incredible high prices being handed to consumers but, presumably, if you are running a commercial pub or a restaurant, it is even worse, isn’t it?” 

Ms MacDonald said: “It is absolutely horrendous. It has been mentioned already this morning but within the business sector, we do not have caps. There is no cap. 

“It is a lottery as to when your current energy agreement will have finished. For some, you may well have gotten in there early, fine, but for many small businesses, we’re looking at a 300-400 percent increase in energy prices.”

Mr Graham said: “And this is not supposedly the end of it either, is it?” 

Ms MacDonald said: “No, not at all. They are talking very much about there being no light at the end of the tunnel and for as long as the issues go on in Russia and elsewhere, those prices will carry on rising.” 

Mr Graham said: “And presumably for some small businesses, for some pubs, they will have to go out of business because they simply cannot afford to run the place?” 

Ms MacDonald said: “Absolutely, as part of the Campaign for Pubs, we’re already hearing of pubs that are closing down and unfortunately there are vultures out there looking to receive a nice piece of residential land to convert those pubs, because once those pubs have gone, they have gone. 

“So, it is a big challenge. Landlords are telling us they are looking at the hours they are operating, the days that they are operating, and many are even going down to three or four days a week just to try and avoid the heating costs.” 

Campaign for Pubs is a non-profit organisation aiming to try to prevent the closure of public houses and the issue of energy bills and high taxation has proved to be a significant threat. 

In their mission statement, the group write: “We believe pubs should pay their fair share of tax, but that pubs are currently subject to a tax burden which is too great, and often unfair and inconsistent. 

“We believe that the community value of pubs should be reflected in the level of tax they pay, and that there needs to be fair, proportionate and sustainable taxation that recognises the importance of pubs and their unique role in our communities and our national identity.

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It comes as departing Prime Minister Boris Johnson issued a note of positivity following the announcement of the energy price cap increase today, saying that with time, Vladimir Putin’s ability to “exercise leverage over us and the rest of the world will diminish”.

The PM said: “I think that we will do everything we can to help. We want to make sure that we get people through the next few months, and we can, and we will because we took the right steps. We have a big, big package of help and support. But the message I want to get over to people is that I’m afraid that there’s a global spike in energy costs driven by Putin’s aggression in Ukraine.

“Putin’s position, Putin’s ability to blackmail, to exercise leverage over us and over the rest of the world will diminish week by week, month by month, and we will get through this and in the end, we will be in a much better position.

“The other side will have more of our own UK energy to rely on, and the bills will eventually come down.”

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