‘The uncertainty is terrifying’: 240 East Devon hospitality businesses face enormous rise in energy bills, pushing many to the edge

By Kate Baxter

7th Feb 2023 | Local News

Honiton's MP, Richard Foord, has urged the government to rethink its plan to cut energy support to East Devon businesses. 

240 pubs, restaurants and cafes across East Devon will see their energy bills increase enormously this spring. The government will slash their support to business in April, leaving many small businesses struggling to pay their energy bills. 

Lisa Beigan runs the Honiton Wine Bar. The restaurant has been forced to reduce its opening hours due to the price of heating the building. 

She told Nub News: "Energy costs at the Wine Bar have increased by almost 3 times and that's with the government discount. 

"The impact this has had is that we have had to close lunchtimes due to the running cost being higher than the available income - the price of energy combined with increasing wholesale costs makes it difficult for the Wine Bar to break even.  

Analysis by the Liberal Democrats has indicated East Devon business could see energy bills increase by a total of £1,083,563. The figure is even higher in Mid Devon where the total will be £458,420.

This means the average East Devon business could face an increase of £4,500 each.

Lisa continued: "We have reduced our menu in order to cut the amount of equipment required, we've had to cut staff hours and reduce trading hours again this winter to just 3 evenings a week. 

"Hospitality venues are high energy establishments and equipment needs to be switched on regardless if there are four covers or 34 covers, so with the cost of living crisis and customer levels down, this has caused a crisis in the industry. 

"The uncertainty is terrifying with no end to this in sight. We are seeing too many independent businesses closing doors because of it.

Last week Bruv's Bar, a popular Honiton bar, announced it was closing permanently due to uncertain times and a lack of customers. 

Analysis by the Liberal Democrats has indicated East Devon business could see energy bills increase by a total of £1,083,563. The figure is even higher in Mid Devon where the total will be £458,420.

This means the average East Devon business could face an increase of £4,500 each.

The Government had capped the cost of business energy, but from April 2023 they are replacing the scheme with paying a small proportion of businesses' increased costs. Many restaurants, pubs and cafes will see a 90% reduction in government support. 

Liberal Democrat MP for Tiverton & Honiton, Richard Foord said: 

"Countless businesses in our area are facing a cliff edge this year as vital Government support is withdrawn sharply in just two months' time. 

"Our pubs, restaurants and cafes have endured so much already, and many have been in touch with me to tell me how they're only just starting to get back on their feet after months of disruption. 

"People across our communities will be devastated to see any more hollowing out of our local high streets. That's why the Government need to give local businesses the support they need to weather this energy bill storm. 

"Liberal Democrats are calling for them to do the right thing and pause this decision while they properly consult with the businesses and customers who this change will affect most. 

"If they don't, we could see thousands of businesses, including pubs, restaurants and cafes going bust. This would rip the heart out of many of our communities and forever damage our beautiful part of the country." 

     

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