Britain's pubs, cafes and restaurants shuttered as energy costs push them to the brink

20 August 2022, 12:12 | Updated: 20 August 2022, 12:13

Soaring energy costs are pushing a growing number of cafes, restaurants and shops across the nation to the brink, with many already announcing they will shut for good as they are hit with monthly energy bills running to many thousands of pounds.

FSB director Martin McTague has told The Independent the rising energy bills, coupled with reduced consumer spending as household bills soar, is forcing thousands of small businesses into making "impossible choices".

"How is an independent cafe supposed to find another £20,000 a year to keep the lights on and the coffee machine going, when they are barely breaking even as it is?" Mr McTague said.

"How can a small manufacturer find another £70,000 to keep the production line going and the staff room heated? With five-figure annual energy cost increases common, too many small firms are being faced with impossible choices."

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Some small businesses forced to close:

Seafood firm, Watford

A caller told Eddie Mair on LBC that the business would have to relocate to the Netherlands. He said the 11 storage and distribution sites in the UK have to move to avoid bankruptcy.

Royal Crown Chinese takeaway, Aberdeen

They said they are expecting to shut down after its energy bills soared by £10,000

The owner told the BBC “every time I turn on a burner to cook something, I’m losing money.”

Molly Brown’s tearoom, Belfast

They will shut next month after a £4,000 energy bill came in. Owner Richard Stewart-Brown told BelfastLive: “our costs had just exploded. The electric bill for two months and two weeks was £4,000.”

Santorini, Italian restaurant in Yorkshire

To close after five years in business as they face monthly energy costs of £2,000. Its owner told YorkshireLive that it was closing despite having lots of customers because it couldn’t turn a profit.

Faulkland Inn, near Bath

The 280-year-old inn is considering closure. Landlord Andy Machen told the Guardian: “Our gas and energy bills have doubled since April and we are facing annual fuel costs of at least £20,000 which will wipe out our profits.”

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Almost 15% of small-and-medium sized firms believe they may have to close or downsize as a direct result of the spiralling energy costs, according to a poll by the FSB.

The Government has faced calls to freeze bills or provide more support to households, which could give a much-needed boost to consumer spending.

However, ministers have said no action will be taken until a new prime minister is in place on September 5.

"We need direct and immediate support from the government," Mr McTague said.

"Extending energy support issued via the council tax system to the rates system, direct help with bills for those small firms which don't pay business rates, and cutting VAT on energy consumption will make a real difference in this space."