Britain is facing mass closures among hospitality businesses unless there is more help from the government over soaring energy costs, industry bosses warned today.
Conditions for trading are so tough that many outlets are shutting early as they struggle to cope with costs that have risen by more than 300%.
In a letter to Boris Johnson, chancellor Nadhim Zahawi and Business Secretary Kwasi Kwarteng, industry chiefs said the sector needs a cut to VAT or an energy price cap to avoid a wave of outlets shutting this winter.
“On Friday, the Government saw fit to declare a drought, in the face of inarguable evidence that weather conditions had caused a threat to the nation. The energy crisis is no less of a threat and deserves similar attention,” the letter from UK Hospitality, the Night Time Industries Association, the British Beer and Pub Association, the British Institute of Innkeeping, and the Music Venue Trust said.
The plea comes as many pubs and restaurants renew their energy contracts, with shock at the scale of the price rise the common response said one energy consultant.
Cabinet sources said that while action is being considered, no major announcements or fiscal decisions will be unveiled until a new PM is selected.
Energy firms meanwhile have proposed a bailout fund to cut household bills with ScottishPower and Eon wanting a cap at current levels for two years funded by long term loans.
Labour leader Keir Starmer has proposed a similar policy.
Shares in Mitchells and Butlers fell 1.6% to 187.6p while JD Wetherspoon eased 1.9% to 582p.