Warning that 7 in 10 pubs face closure as businesses left in dark over energy bills

‘I think we are now entering probably the most critical week for my industry in my lifetime’

Seven out of 10 pubs are likely to close this winter because of rocketing energy bills without an urgent rescue package, ministers have been warned.

Sacha Lord, the head of the Night Time Industries Association urged the government to act without delay – as businesses remain in the dark over the help to be made available.

Unlike households, business energy bills have not been frozen until 2024 and they have been given only a vague promise of 6 months of “equivalent” relief, as many contracts come up for renewal.

Meanwhile, No 10 is refusing to confirm the mini-budget that could end the uncertainty will be staged next week as hoped, arguing the mourning period ahead of the Queen’s funeral prevents an announcement.

Mr Lord called the “fiscal event” the “last hope” for pubs, also calling for business rates relief and a Covid-style reduction in VAT, when the tax was slashed from 20 per cent to just 5 per cent.

“I think we are now entering probably the most critical week for my industry in my lifetime,” he told BBC Radio 4.

“My phone is red hot and people are just at the end of their tether. And we already know that probably seven out of 10 pubs won’t make the winter if this help doesn’t come.”

The night time economy adviser for Greater Manchester added: “That’s not just Greater Manchester – that is the UK. We are at tipping points.”

Because there will be no energy price cap for businesses, they do not know when their bills will be reduced – unlike households, where the freeze kicks in on 1 October.

Many firms have fixed contracts lasting one or two years, but it is estimated that one third have contracts that traditionally come up for renewal in October, before the winter.

Mr Lord pointed to one family-run pub in the Lake District which has just been quoted an annual energy bill of £124,000, calling that “untenable”.

And he warned that providing help for only six months, while helpful, would “take out any hope of investments in my industry”, adding: “We’re sat in limbo.”

Liz Truss is expected to return from a visit to the United Nations in time for a mini-budget on Thursday next week, before parliament breaks up again for the Labour and Conservative party conferences.

However, a further complication is that legislation might be needed to push through a package of support for businesses, with a shrinking window of opportunity to pass it.

In contrast, No 10 says it does not need to pass legislation to enact the household price freeze that will, from 1 October, hold down average annual household bills to £2,500 until 2024.