Bankruptcies across the UK’s hospitality sector shot up last year, with rising costs forcing over 500 pubs and bars to shut their doors.
Some 512 firms went bust in 2022, a rise of 82.9% on the 280 closures in 2021, according to accountant UHY Hacker Young, as higher energy, labour, food and drink costs, dragged up after Russia’s invasion of Ukraine last February, squeezed the sector.
Peter Kubik, UHY partner, said: “This is a particularly difficult period for pub and bar owners, who find they need to spend more and more while earning less and less.
“Perhaps the government should consider what it can do to alleviate pressures.”
Despite calls from industry bosses for increased public help, reduced government support on energy bills from April is set to deal another blow to the sector.
A further £5.5bn has been earmarked to help businesses with energy bills over the year from April, although this marks a significant reduction from the £18bn promised between last October and March.
“Energy costs are simply a pub killer,” commented chief executive of the British Institute of Innkeeping Steven Alton, who called on the government to do more to lower bills, which remain inflated despite wholesale gas having fallen below pre-Ukraine war levels.
Pub and bar bankruptcies surge ad energy costs bite” should be launched.
The two industry bodies, alongside UKHospitality and Hospitality Ulster, found one in three of their members were at risk of failure heading into 2023, while one in six had no cash reserves.
CGA figures showed sales in the sector have grown in every week respectively this year compared to early 2022, although due to higher inflation pubs have faced reduced income in real terms, the consultancy added.