The cost of living is rising, and pub bosses are tasting it. Last year, the number of bankruptcies soared by 83% over one year in the sector, according to the British firm of accountants UHY Hacker Young.
“After a tough time during the pandemic, many pubs and bars find themselves with very little savings or ability to borrow more”, and for some, “the current economic downturn has been the latest push into insolvency”, described the firm in a statement Monday.
512 pubs filed for bankruptcy in 2022
During the Covid-19 pandemic, government aid had kept many companies on life support. But in 2022, 512 pubs filed for bankruptcy, up from 280 the previous year, during a period when energy prices soared, straining business budgets, the statement said.
At the same time, the cost of living crisis “has affected the habits of consumers, making them less likely to spend on non-essential products”, continues the firm, for which the strikes of railway workers for wages, which have multiplied these months in the country, have also turned away customers from city center pubs.
The number of pubs has been slowly declining across the country for several decades, but “recent shocks like the pandemic and the energy crisis have put (these establishments) under greater pressure than ever”, according to the industry federation, British Beer and Pub Association (BBPA).