'Costs have gone through the roof': Last orders for an increasing number of Peterborough’s pubs, says boss

A Peterborough pub boss is pleading for Government support as 2,000 of the nation’s watering holes are facing last orders, according to the British Beer and Pub Association (BBPA).

The BBPA, which is the drinks and hospitality industry's largest and most influential trade association, says the challenging trading conditions pubs and breweries have had to endure over the past few years has made it difficult for many of them to survive.

Chief Executive of the British Beer and Pub Association, Emma McClarkin, said: “After almost three years of extremely tough trading conditions due to lockdowns, an energy crisis, supply chain disruptions and more, now is a make-or-break moment to save our locals and breweries from failure now [and] in the years to come.”

The BBPA is calling on the Government to use the upcoming Spring Budget to extend a lifeline to the sector.

“It is crucial the government shows in this budget that it understands the pressures the sector is facing,” Emma said.

“We need the government to act now or risk losing something very special forever.”

‘Utilities biggest problem’

Darren Peachey, a pub leasing company director who, along with his wife Carly, leases 11 pubs across our region, including The Dragon in Werrington, also believes the industry is standing at a fundamental crossroads.

“I’ve been doing this ten years now and I’ve never seen so many pubs close in my life,” he said.

Darren believes there is one thing above all that needs to be addressed to save his industry - energy costs.

“Utilities is the biggest problem we’ve got,” he said: “that’s the biggest headache of our entire industry.”

“Our turnover hasn’t changed that much but our costs have gone through the roof.”

“Even though we put prices up, we don’t make any more money - we have to put prices up to survive.”

‘Stagnated industry’

Darren believes the only way the industry can avoid being “decimated” is to allow pubs and breweries to renegotiate the existing contracts they have with energy companies.

These contracts were signed last year in the belief “the government would roll on the help [financial support] with the utilities after April for vulnerable businesses”, like hospitality

“We signed into contracts we wouldn’t have signed into,” Darren says, bluntly.

“We’re all going to hit April and our bills are going to go through the roof.”

“We need to re-negotiate these contracts - that’s the main thing.”

Darren believes that, even if the Spring Budget is favourable, it will be too little too late for many pubs.

The damage he believes, has already been done. A drastic change in utility costs is, he asserts, the only change that will make any significant difference.

And if that doesn’t happen - what of the industry then?

“The industry would be decimated,” he says, “you’ll be left with managed pubs because the big breweries will still survive.”

“There will be no investment in pubs, either - that will all be gone.”

“It’s just a massively stagnated industry at the moment.”

“It will literally implode,” Darren says, finally: “it will be gone.”