Status: 02/13/2023 2:13 p.m
High energy costs, long-term effects of Corona and now inflation: Great Britain’s legendary pub culture is under threat. Last year, 512 pubs had to close due to bankruptcy – almost twice as many as in the previous year.
The number of bankrupt pubs in England and Wales has risen sharply in the past year, according to an analysis. A total of 512 pubs have filed for bankruptcy, the PA news agency quoted from a study by the accounting firm UHY Hacker Young. A year earlier there were still 280 pubs that had to close their doors forever due to over-indebtedness or insolvency.
Many pubs are struggling with rising energy costs, the reasoning was given. After the pandemic, many pub owners would also have no reserves. In addition, the guests stayed away because of the high inflation. After all, fewer commuters came because of the long train strikes.
Many reasons for the pub dying
UHY expert Peter Kubik spoke of an “extremely worrying situation”. “Apart from the financial consequences for owners and employees, the loss of a pub also hits the communities hard,” said Kubik. “After a long period of lost income during the pandemic, the cost-of-living crisis has been the final nail in the coffin for many.” He called on the British government to continue to help and to extend government energy subsidies.
The dying of pubs in Great Britain had started long before the outbreak of the pandemic. Reasons include the smoking ban, cheaper alcohol from the supermarket or a change in drinking habits. In addition, innkeepers complain about taxes on beer, which are among the highest in the world.
According to the British Beer & Pub Association, there were around 46,350 pubs across the country in 2021. At the beginning of the century there were still around 60,800. These figures relate not only to England and Wales, but also to Scotland and Northern Ireland.