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UK pubs and restaurants are facing increasing financial pressure from rising utility costs as they struggle to stay open amid an energy crisis expected to worsen this winter.
Lindsay Armstrong, owner of Champs Sports Bar and Grill in the small town of Washington, Northeast England, told The New York Times about her annual electricity bill of $135,000. of about $30,000.
Armstrong says the shortest contract she’s been offered is three years.
“The longer you wait, the harder it will be to make a decision, but you really can’t sign a contract for such a period,” Armstrong said.
Why Europe’s energy bills keep rising
Armstrong said he is looking to shorten business hours and reduce staff, but he recognizes that employees are also facing financial hardships due to rising energy costs, including Some are new parents.
“We opened. We’ve had a really good year. And getting this is just soul-destroying,” said Armstrong, her pub going into coronavirus lockdown. He went on to explain that he’s had a good year since opening.
James Watt, owner of the popular British brewery and pub chain BrewDog, recently took to social media to tell customers that he would be closing six of his stores due to “soaring” energy costs.
“The reality of the hospitality industry is starting to get tougher,” Watt wrote on LinkedIn.
Economists sound alarm on green energy as Americans battle costs: ‘Europe is telling us a big story’
The chief executives of six major pub chains and the chairman of the British Beer and Pub Association have called on the government to intervene “promptly and substantively,” according to The New York Times.
I need help. Otherwise, “undoubtedly huge numbers of pubs will close and individuals will lose their jobs in the face of a cost of living crisis,” they wrote.
UK residents said on Friday their annual home energy bills would rise by 80%, following a record 54% surge in April. This takes the average customer’s annual cost from £1,971 ($2,332) to £3,549.
The rise was attributed to high wholesale natural gas prices caused by Russia’s war in Ukraine, pushing up consumer prices and disrupting economies across Europe that rely on fuel to heat homes and generate electricity. I am letting
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But some experts say that electricity prices in Europe hit an all-time high in the months before the invasion, blaming the country’s growing dependence on electricity. green energy policy.
Rising energy and rapidly rising food costs are expected to push inflation past July’s 40-year high of 10.1%, triggering a recession later this year, the Bank of England said. I am predicting. Charities, public health leaders and even energy companies are warning that lagging wages will have devastating effects on poor people who are already struggling to afford essentials.
The Associated Press contributed to this report