New Times,
New Thinking.

  1. Chart of the Day
30 August 2022

Can your favourite pub afford to keep the lights on this winter?

Business electricity spending is set to rise rapidly in October.

By Nicu Calcea

Businesses’ spending on electricity is set to more than double as a share of all expenditure compared with 2018, New Statesman analysis found.

Pubs, restaurants and catering services, for example, were spending an average of 8.8 per cent of their budget on electricity in 2018. Without government support, that figure is expected to rise to 20.6 per cent in October 2022 when the energy price cap is increased.

Hospitality businesses will be particularly badly affected. A group of pubs and breweries have sent an open letter to Rishi Sunak and Liz Truss on Tuesday warning that the soaring energy prices may cause lay-offs and pub closures.

Emma McClarkin, chief executive of the British Beer and Pub Association, said: “There are pubs that weathered the storm of the past two years that now face closure because of rocketing energy bills for both them and their customers. If we lose them, we not only lose businesses and the jobs that go with them, but also the beating heart of communities across the country where people gather in times of need. We need an energy cap for businesses before it’s too late.”

Our analysis assumes that electricity prices will rise in line with the announced energy price cap for October, while all other expenses will follow overall inflation rates and Bank of England projections. This doesn’t account for business electricity rates or differences in the types of other goods and services businesses spend their money on and some sectors may see even higher price rises.

Select and enter your email address Your weekly guide to the best writing on ideas, politics, books and culture every Saturday. The best way to sign up for The Saturday Read is via saturdayread.substack.com The New Statesman's quick and essential guide to the news and politics of the day. The best way to sign up for Morning Call is via morningcall.substack.com
  • Administration / Office
  • Arts and Culture
  • Board Member
  • Business / Corporate Services
  • Client / Customer Services
  • Communications
  • Construction, Works, Engineering
  • Education, Curriculum and Teaching
  • Environment, Conservation and NRM
  • Facility / Grounds Management and Maintenance
  • Finance Management
  • Health - Medical and Nursing Management
  • HR, Training and Organisational Development
  • Information and Communications Technology
  • Information Services, Statistics, Records, Archives
  • Infrastructure Management - Transport, Utilities
  • Legal Officers and Practitioners
  • Librarians and Library Management
  • Management
  • Marketing
  • OH&S, Risk Management
  • Operations Management
  • Planning, Policy, Strategy
  • Printing, Design, Publishing, Web
  • Projects, Programs and Advisors
  • Property, Assets and Fleet Management
  • Public Relations and Media
  • Purchasing and Procurement
  • Quality Management
  • Science and Technical Research and Development
  • Security and Law Enforcement
  • Service Delivery
  • Sport and Recreation
  • Travel, Accommodation, Tourism
  • Wellbeing, Community / Social Services
Visit our privacy Policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
THANK YOU

[See also: The cost of running household appliances is shooting upwards]

Content from our partners
An innovative approach to regional equity
ADHD in the criminal justice system: a case for change – with Takeda
The power of place in tackling climate change