150 pubs, restaurants and cafes in Shropshire at risk of closure as business support slashed

Nearly 150 pubs, restaurants and cafes are at risk of closure in Shropshire following the Chancellor’s Budget last month, new analysis by the Liberal Democrats reveals.

The Budget confirmed that business energy support will be slashed by 85% by moving from a cap on unit costs of electricity and gas to a discount covering a small proportion of the price, leaving a huge gap in the finances of many in the hospitality sector.

Even successful rural pubs are now being forced to weigh up their futures after seeing their bills quadruple in just one year [see case study below].

According to the Federation of Small Businesses “one in four small firms anticipate either closing, downsizing, or radically changing their business model” when business support is slashed in April.

Liberal Democrat analysis shows that small and medium sized pubs, restaurants, and cafes are facing an increase in bills of £231 million – around £2,623 per business in Shropshire.

Rural pubs, restaurants, and cafes will be particularly negatively hit by the cut, due to the higher proportion of older, larger, and harder to heat building stock.

Liberal Democrat MP for North Shropshire, Helen Morgan said, “Business energy support has acted as a lifeline for pubs, restaurants and cafes across Shropshire as costs rise and rise. Cutting this while bills are still high and inflation is soaring will have a hugely negative impact on businesses across the county.

“In rural Shropshire, pubs are often far more than just a place to get a drink – they are the hub of their community. I visited the Royal Hill at Edgerley during flooding earlier this year, and saw the incredible work they do to keep the community moving when waters are high in and around Melverley. Their work in combating rural isolation is really important, and is a great example of why the government need to show their support for the industry.

“Once again, it seems like the countryside is being hung out to dry by a government that takes rural areas like ours for granted.”