Pubs fear worst as energy costs soar

PUBS in the Henley area are struggling to stay afloat as energy prices spiral.

Some owners and landlords are trying to reduce their energy usage by turning off lights and cookers, while others plan to raise the price of food and drink to offset higher bills.

Many believe the Government should intervene and bring in an energy cap for businesses.

On Tuesday, bosses of six of the country’s biggest breweries called for immediate intervention. In an open letter, they suggested a support package and an energy cap to prevent further damage to the pub and brewing industry.

Currently, there is no cap like the one for households, meaning there is no limit to what energy companies charge businesses. Last month, the Baskerville in Shiplake closed with the landlord blaming spiralling energy costs.

Now others could follow suit.

Dan Redfern, landlord of the Cherry Tree Inn in Stoke Row, said the pub’s energy bills had risen from £18,000 to £60,000 since April and the business would not survive the winter without support.

He said: “If a pint of beer had risen as much as the energy bills, it would now cost £12. A portion of fish and chips would cost £40.

“There is no cap on our bills, so no protection. The Government seems to have been more focused on household bills, which are shocking, but only now are they beginning to talk about businesses. It seems like they are acting after the horse has bolted.

“This is off the back of covid and Brexit and we are also now dealing with the rising cost of food and we’re paying higher wages to combat the increasing cost of living.

“Any profit we used to make is now no longer possible and if the Government doesn’t intervene, I don’t think we’ll make it through winter. They need to lower the VAT and put a cap on energy bills.

“You have to remember that while this is happening, these energy companies are making record profits. It is a joke that nothing has been done to help us.”

The Red Lion in Peppard Common only re-opened in July but is already feeling the strain of high energy bills.

The pub was closed for three years before being bought by villagers Tony and Barbara Laithwaite last year.

Bar manager Oliver Brooks said: “When we were preparing to open up the pub and looking at different costs, we used old energy prices but we only had that for a month or so before the bills jumped up.

“As a pub, we constantly have the gas going. We serve food so the cooker is always on and the fridge and freezer are running constantly.

“It is the worst time to be a publican. It was difficult enough to run a pub anyway but this has made things so much harder.

“I have always been a firm believer that a pint should not cost more than £6 but we now have a few of our beers exceeding that.

“If it continues, people are not going to want to come to the pub and will drink tins at home instead. Then we’ll just be another closed pub.”

Ben Sills, who took over The Maltsters Arms in Rotherfield Greys in May, said: “We budgeted when we opened as we knew costs were rising. As we have got busier, we have noticed the bills creeping up as we use more and more gas.

“We think we are going to struggle come December. In fact, I know we will.

“We are going to have to raise prices, which is frustrating. The Government has to do something.”

Henry Wilkinson, assistant manager of The Bull on Bell Street in Henley, said: “I think the Government are doing what they can.

“They are in a difficult position and have a lot on their plate. They do have a country to run.”

The Loddon Brewery in Dunsden Green has seen its energy bills quadruple in the last few months and is having to keep costs down.

Shane Willoughby, head of retail said: “Brewing uses up a lot of energy. We have 3,400 litres of water we have to heat, which uses a lot of power.

“Then there’s all the pumping of liquid to different equipment. We also have to keep our brews cool in a cask store, which has fans running 24/7.

“We are okay at the moment but if things were to get worse, we would have to think about how much we brew and potentially scaling back.

“I do not think it is sustainable, however. It is similar to what happened with pubs during covid.

“I believe the Government has to step in and help support breweries as it is not looking good the way things are going.”

Tom Davies, chief executive of Henley pub company Brakspear, said: “It’s a worrying situation which we’re monitoring closely.”