It's a gloomy forecast for country pubs

There could be no room at countryside inns this winter because of crippling electricity price rises.

Country pubs, who rely so heavily on visitors, could face closure this winter because of spiralling costs.

The problem has been highlighted by Julian Taylor, whose family have owned and run the iconic Church Inn in Uppermill for 33 years.

Mr Taylor, a father of four, said: “Approximately 15 months ago we paid £1,450 per month for electricity at the Church Inn, going up to £2,600 per month seven months ago.

“The latest quote to come into force in September takes the figure to up £6,770 per month if nothing is done about it.

“It would be very unfair to pass these additional costs on to customers who are already hit by cost of living crisis.

"It’s a real dilemma.

“I’m looking to install alternative methods of lighting and heating at the pub.

"I could consider solar panels or wind power.

"I could do that for the cost of one month's power supply at these proposed prices.

“Unless something positive happens over costs, I think some pubs would have to call time on winter openings and only open for a special occasion or a specific function.”

The ex-leader of Oldham Council and Saddleworth Parish Councillor, John Battye, said: “Julian’s statement mirrors what will happen to hundreds of thousands of businesses this winter. 

“‘If the prices of gas and electricity go ahead then the leisure industry will be hit particularly hard.

"People will cut back on meals out and visits to their local pub.

“Landlords will have huge energy price rises at a time of falling numbers of customers.

“Holidays at home and abroad will be cancelled, and hotels, tour companies and airlines will see bookings slashed leading to huge job losses. 

“Across the Channel, the French Government has limited energy price increases to 4% to protect home owners and the wider economy. 

“Here, the UK Government is paralysed as two contenders to be the next PM slug it out in a series of insults in which we the general public are mere spectators to this slugfest who are worried sick about the energy catastrophe about to hit us.”

Angela Rayner, Deputy Leader of the Labour Party and MP for Ashton-under-Lyne and Failsworth, said: “Pubs are a vital part of our high streets and social fabric in communities throughout the country. 

“They also play an important role in our national economy.

"Indeed, before the pandemic, the sector was supporting 900,000 jobs, generating £23 billion in economic value and providing £13 billion in tax revenues.

“As well as rising energy bills, I am aware pubs face a range of tax pressures, including beer duty, business rates and VAT.

"Even before the pandemic, they were under severe threat, with a 15% fall in their number from 2010 to 2020.

“The Government has frozen beer duty, as well as consulting on reforms to alcohol duties from 2023 that would reduce rates on draught beer, as well as some lower strength beers.

“However, hospitality businesses have still faced tax rises including a 7.5% VAT increase earlier this year.

"And while a one-year business rates discount for hospitality is a positive step, UKHospitality has highlighted that it is not enough to offset tax increases and inflationary costs, while many businesses are also excluded.

“I am concerned the Government is not listening to the hospitality sector about the support they need.

"On business rates, for example, I believe it has missed the opportunity for fundamental reform. 

“In the final report of its business rates review, the Government said it was “not proposing changing the nature of the tax, or the basis of valuation”. 

‘I believe we need to scrap the current system and replace it with one that is fairer and provides a level playing field for the high street businesses that do so much to enrich our lives. 

‘Given the number of jobs depending on our pubs, an overhaul of business rates is long overdue and must be part of a real plan to help our hospitality industry thrive.”

She added: "Labour wouldn’t let people pay a penny more on their fuel bill this winter. 

“We have a plan to stop bills rising this winter would save the typical family £1,000 now, get energy costs under control for the future, and help tackle inflation.

“Our fully-funded £29bn plan would prevent the energy price cap rising through the winter, paid for by extra tax from oil and gas giants who are making eye-watering profits. 

"The package would reduce energy demand and lower bills in the longer term by insulating 19 million homes across the country over the next decade through Labour’s Warm Homes Plan.

“Labour originally urged the government to implement this plan a year ago.

"If they'd acted, they could have insulated two million of the coldest homes by this winter – saving the typical household an additional £1,000 every year on their energy bills. 

“Freezing the price cap will bring inflation down by 4%, making future interest rate rises less likely and easing the burden on households and businesses.

"Further plans include a plan to secure our energy supply to make sure we’re protected against future shocks and build Britain's energy independence.”

In Scotland, there are already fears many pubs and restaurants will close over winter because they have no way of generating the amounts of income to meet the cost of the power due to lowered foot fall in the winter months.

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