Industry leaders are warning that pubs and breweries across the UK are on the brink of closure as some energy bills are feared to rise by up 300%.
With the energy price cap set to increase once again in October, and the rising cost of living crisis continuing to make its impact felt nationwide, bosses of six of the UK’s biggest pub and brewing companies have penned and signed an open letter to the government urging it to act in order to avoid “real and serious irreversible” damage to the sector.
The bosses of Greene King, JW Lees, Carlsberg Marston’s, Admiral Taverns, Drake & Morgan, and St Austell Brewery have all signed the letter.
They all sit on the board of British Beer and Pub Association (BBPA).
The letter has been penned because, while domestic customers are facing an 80% increase in average bills in October, businesses operate without a regulated price cap, and this is said to be leaving pub owners struggling to find suppliers willing to power their venues when contracts come up for renewal.
One regional pub had seen their energy bill jump £33,000 for the year, according to Nick Mackenzie, chief executive officer of the Greene King Group – which has more than 2,700 pubs across the country.
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“While the government has introduced measures to help households cope with this spike in prices, businesses are having to face this alone, and it is only going to get worse come the autumn,” Mr Mackenzie explained.
Pubs and breweries warn of closure over 300% rise in energy bills / Credit: Fred Moon (via Unsplash)
“Without immediate government intervention to support the sector, we 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, meaning all the good work done to keep pubs open during the pandemic could be wasted.”
The six pub and brewery group bosses have demanded the government implement an urgent support package that would be similar to capping the price of energy for businesses.
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“We have publicans who are experiencing 300% + increases in energy costs and some energy companies are refusing to even quote for supply,” added William Lees Jones – Managing Director of JW Lees .
“In some instances, tenants are giving us notice since their businesses do not stack up with energy at these costs. These are not just pubs but people’s homes and the hearts of the communities that they sit in.
“Government needs to extend the energy cap to business as well as households.”
— British Beer & Pub Association (@beerandpub) August 30, 2022
In response to the open letter, a government spokesperson said: “No government can 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.
“That includes 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.
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“This is in addition to the billions in grants and loans offered throughout the pandemic.”
Michelin-recommended rooftop restaurant Climat has closed its doors with immediate effect
Daisy Jackson
One of Manchester’s top-rated restaurants has announced its shock and immediate closure.
Climat, which is set way up high in Blackfriars House with staggering views of Manchester city centre, has said that the Michelin-recommended restaurant is now permanently closed.
In a heartbreaking statement, founder Christopher Laidler said that Climat is ‘yet another casualty of the times we’re living in’.
Laying out the brutal reality of running a hospitality business, Chris wrote about ‘rampant food inflation’, an ‘ever-increasing tax burden’, and ‘the persistent cost of living crisis’, describing it as a perfect storm against hospitality.
Then delving deeper into the numbers, he shared that Climat has faced an eye-watering £112,000 electricity bill for its first 13 months in business – that’s 400% more than they’d budgeted.
That was chased by a 33% increase in staff wages, then a jump in business rates from £12,000 a year to £38,000 a year.
Couple that with reduced footfall and it’s ‘spelling disaster for so many’.
Climat has closed its doors with immediate effectClimat has laid their finances bare in their closing statement
He wrote: “Whilst I wanted to highlight these reasons for closure, in the naive hope the Government will start to listen before it’s too late for others, I want to acknowledge the fantastic work of our team over the last 3.5 years.
“The closure does not do justice to their efforts and dedication. I’d also like extend a huge debt of gratitude to our guests for their support, enabling us to build a nationally recognised wine list – our raison d’être.”
Signing off, he said: “I wish everyone the very best of luck in these challenging times. Bye for now, Christopher.”
Climat opened in late 2022, with an impressive wine list and a beautiful restaurant space overlooking Manchester.
It didn’t take long before it was added to the Michelin Guide, which wrote: “An open kitchen is the focus of the room, with its aromas filling the air, and the concise fixed-price menu includes well-executed dishes such as halibut with spinach and sorrel velouté, where the ingredient quality shines through.
“Wine is a feature with one side of the room acting as a bar and the carefully curated list deftly mixing traditional and modern styles.”
Claire’s is closing down stores in the UK and Ireland with more than 1,300 jobs set to be lost
Danny Jones
In another hit to domestic shoppers, Claire’s Accessories is closing down en masse across the UK and Ireland after entering into administration once again.
Falling into an unfortunate financial status for the second time in less than a year, Claire’s will be shutting down all of their standalone stores across Britain, along with their IE branches.
A total of 154 stores will soon disappear, with more than a thousand people set to be put out of work.
Once a mainstay of British high streets up and down the country, the accessory shop known for all things jewellery, piercings and more has ceased trading effective immediately.
Announced at the start of the week and the end of the first full month of Q2, it was confirmed that Claire’s closed their final locations on Monday, 27 April.
With administrators, Kroll, appointed to wrap up business proceedings, an estimated 1,300 English, Irish, Scottish and Welsh workers have now lost their jobs.
Founded way back in 1961 over in the United States, Claire’s has operated across the Atlantic for more than three decades.
However, with various other contemporaries and cheaper online options having appeared over the years, they’ve struggled not just to remain profitable but to compete full stop.
They most recently filed for bankruptcy in the US this past August (2025), with their Belgian, Spanish, and Dutch divisions having already called it quits.
Manchester location(s) have changed a lot over time, but now they’re on the way out (Credit: Arndale)
For many, the outcome isn’t all that surprising, but it will nevertheless be a sad loss for many who have seen multiple generations visit these venues over the years.
Emily Sergeant -
30th August 2022 
