London Daily

Focus on the big picture.
Monday, Jun 29, 2026

Pubs closure warning: 'My energy bill went to £35,000 from £13,000'

Pubs closure warning: 'My energy bill went to £35,000 from £13,000'

Pubs across the UK will be forced to close due to energy costs soaring by as much as 300%, brewery bosses have said.

Leaders of six of the country's largest breweries have called for "immediate government intervention" on sky-high energy bills this winter.

The landlord of one pub in Essex told the BBC that his energy costs had risen from about £13,000 a year to £35,000.

Pub owners said the energy crisis would cause "real and serious irreversible" damage to the industry without support.

In an open letter to the government, six pub and brewing groups - JW Lees, Carlsberg Marston's, Admiral Taverns, Drake & Morgan, Greene King and St Austell Brewery - called for urgent intervention, including a support package and a cap on the price of energy for businesses.

Rocketing energy bills come at a time when the number of pubs in England and Wales is falling, hitting the lowest level on record - 39,970 in June, according to analysis.

Simon Cleary, who runs the Plough in Great Chesterford, Essex, said his gas and electricity bills had nearly tripled to £35,000 a year.

It means the pub now needs to generate a further £1,800 in takings per week to cover the costs.

"It really is that bad," he told the BBC. "I think it's going to be really tough unless there is intervention from the government."

Landlord Simon Cleary needs to take another £1,800 each week to afford the bill hikes


Mr Cleary said heating the pub in the winter made up the majority of his gas bill, with about 20% used for cooking food.

In a bid to try to reduce his electricity bill, the landlord has fitted LED bulbs. However, there is only so much energy he can save because fridges, freezers and the cooling system for the cellar need to be on all the time. "You cannot turn your cellar cooling off, you need it on even in the winter."

He added: "Many pubs are very older buildings, few pubs have got cavity wall insulation. This pub was built in 1780. Back in those days nobody was thinking about conserving energy."

Chris Jowsey, boss of Admiral Taverns which has 1,600 pubs, said his tenanted pubs now pay more in energy bills than they do in rent.

He told the BBC that one of his tenants told him he was leaving after 20 years due to his electricity bill going up 450% - an increase so large he couldn't pass it on to pub customers.

Mr Jowsey said Admiral was investing in energy-saving equipment for pub cellars and to control how much energy fridges use. He also said the company was "looking very closely at a scheme to try and buy energy in bulk and to allow licensees to make use of our own scale".

But he said: "Even when we went to the energy market in recent months, no-one was initially willing to supply even us, never mind an individual licensee and their pub.

"So we're trying to do everything we can," said Mr Jowsey. "But frankly, this is of such a scale that even we can't support this on our own, we desperately need government intervention to help because actually the market is broken."

The Department for Business, Energy and Industry said "no government" would be able to control the "global factors pushing up the price of energy and other business costs".

"But we will continue to support the hospitality sector in navigating the months ahead," a spokesman added. The government said it was providing a "50% business rates relief for businesses across the UK, freezing alcohol duty rates on beer, cider, wine and spirits and reducing employer national insurance".

Emma McClarkin, chief executive of the British Beer and Pub Association, warned the rise in energy bills would cause more damage to the industry than the pandemic did if it didn't receive support in the next few weeks.


'Waiting for a PM'


The government has previously said no new policies will be announced until the new prime minister is announced on 5 September.

But Mr Jowsey said: "I find it incredible that we have to wait for one person to get elected before we actually get some decisions and some policy which will protect not just jobs, not just people's livelihoods, but also their homes - because remember most people that run pubs in this country actually live above the shop."

Jonathan Reynolds, Labour's shadow business secretary, said businesses couldn't "afford another day of this zombie government", saying his party would bring down costs for small firms by cutting business rates.

Nick Mackenzie, the boss of Greene King - one of the UK's largest pub groups with over 3,100 pubs - said the company could face "the prospect of pubs being unable to pay their bills, jobs being lost and beloved locals across the country forced to close their doors".

He added that would mean all the support given to pubs through the pandemic to stay in businesses "could be wasted".

Meanwhile, William Lees Jones, of JW Lees, said the government needed to extend the energy cap to business as well as households.

He said with more fixed-price contracts coming up for renewal the "time to act is now".

On Friday, the energy regulator Ofgem, which sets the price cap on household bills, said it would rise by 80% in October.

But unlike households, businesses aren't covered by a regulated energy price cap, meaning bills are even higher.

Aside from bills, breweries also highlighted a possible shortage of carbon dioxide (CO2) which is used in the production of beer.

CF Industries, the UK's largest CO2 producer, recently announced that it would temporarily stop production at one of its plants because rising energy prices made it too expensive to continue.

Newsletter

Related Articles

0:00
0:00
Close
UK Launches New Measures to Improve Safety Standards in Night-Time Venues
UK Tightens Import Rules for Low-Value Parcels to Support Domestic Retailers
UK Launches £85 Million Obesity Care Programme Targeting Early Intervention Projects
UK Commits Up to $26 Million to Ebola Response in Democratic Republic of Congo
Security Industry Authority Flags Safety Failures in Night-Time Economy Inspections
Cambridge South Railway Station Opens After £250 Million Investment
UK Moves to Close Import Duty Loophole for Small Parcels by 2028
UK Invests £85 Million in Projects to Transform Obesity Care
Berkeley Group Warns London Housebuilding Falling Far Short of Demand
UK Council Tax Arrears Rise to £9.3 Billion Amid Ongoing Household Financial Strain
Markets Watch Political Transition as Andy Burnham Emerges as Labour Leadership Frontrunner
Extreme Heat Raises Long-Term Risks for UK Inflation and Productivity, Analysts Warn
UK Health Alerts Extended as Record June Heatwave Grips England
UK Parliament Faces High-Stakes Week of Spending, Security and Industrial Legislation
UK Repeals Vagrancy Act Ending Criminalisation of Rough Sleeping in England and Wales
GB News Pundit Charged With Fraud Over Alleged Conduct as Former Labour Adviser
Reform UK Gains Parliamentary Visibility in First Senedd Opposition Appearance
Metropolitan Police Arrest Man on Suspicion of Attempted Murder After London Car Incident
Ocado Chief Executive Tim Steiner Faces Scrutiny Over £100 Million Remuneration Package
British Chambers of Commerce Downgrades UK Growth Outlook to 0.9 Percent for 2026
Nottingham University Hospitals Maternity Failings Trigger Renewed Calls for Public Inquiry
Severe Heatwave Disrupts UK Transport Networks and Strains Public Services Across England
Labour Leadership Transition Raises Prospect of Andy Burnham Becoming UK Prime Minister
UK Government Confirms Further Medicine Price Concessions for Community Pharmacies in June
British Chambers of Commerce Calls for Public Procurement Reform to Boost Regional Growth
Thousands Mark Armed Forces Day Across the United Kingdom With National Parades and Flypasts
Man Arrested in Ealing on Suspicion of Attempted Murder After Vehicle Ramming Incident Injures Five
Cambridge South Station Opens With £250 Million Investment to Strengthen Life Sciences Corridor
UK Heat-Health Alerts Extended Across England as High Temperatures Persist
Thames Water and Energy Operators Warn of Peak Demand Risks During UK Heatwave
Government Conference Highlights Push for Evidence-Led Policy Across UK Public Sector
Insolvency Service Reports Improved Confidence in UK Insolvency System
Security Industry Authority Finds Widespread Safety Failures in UK Night-Time Economy
Nigel Farage Expands Anti-WHO Campaign Into United States With New Lobbying Structure
Home Secretary Seema Mahmood Unveils New Safe Routes Plan for Asylum Seekers
UK Government Warns of Peak Electricity and Water Pressure Amid Ongoing Heatwave
New Nuclear Plant in Wales Named Gwyndod Power Station as Energy Strategy Advances
UK Announces First Major Hydropower Projects in Four Decades to Expand Renewable Capacity
Thirteen Men Charged in Major UK Sexual Abuse Case as Investigation Continues
UK Launches Cross-Sector Climate Security Taskforce Linking Environment and National Security
UN Secretary-General António Guterres Calls for Urgent Global Methane Emissions Cuts in London
World Bank Approves $1 Billion UK-Backed Financing Package for Ukraine Recovery
UK Pledges Emergency Aid and Rescue Team Deployment to Earthquake-Hit Venezuela
Bank of England Holds Interest Rates at 3.75 Percent for Fourth Straight Meeting
Record-Breaking Heatwave Puts Strain on UK Health Services and Energy Networks
London Ambulance Service Sees Record Emergency Demand as Heatwave Intensifies
British Chambers of Commerce Warns of Prolonged Weak Investment Climate Through 2027
Bank of England Holds Interest Rates as Inflation Risks Persist
UK Construction Sector Faces One Percent Contraction Amid Cost and Investment Pressures
Former DUP Leader Sir Jeffrey Donaldson Convicted of Sexual Offences
×