The effects of rising energy prices, on top of the Covid-19 pandemic, threaten the existence of many pubs and other small businesses. Without a rescue package, as many as seven in ten pubs could go under this winter. And a delayed or insufficient package won’t be enough for many.
Trevor Maris and Karen Hall own a traditional micropub, the Chesterfield Alehouse in Derbyshire. The Socialist recently spoke to Trevor.
Before we talk about energy costs, the past two weeks must have been somewhat strange. Have you noticed any difference in what your customers have been discussing?
Obviously the death of a monarch has been a unique experience for most of our customers and it would have been very strange for it not to feature in discussions around the pub. There have been a few arguments between those who still want to retain a monarchy and those – probably the majority – who think it is an outdated relic.
What has been most interesting, though, is the almost universal criticism of the blanket coverage on the BBC and other media, which has been seen as a cynical ploy to detract from the economic crisis most of us are facing.
Has the Queen’s death caused any issues for you as a small business?
Yes. It added further delays in, what for some will be, rescue packages being announced. This comes on top of the delay caused by the Tory leadership contest. By the way, before her death, the main topic of pub conversation had centred around one question: ‘Are they really the best two on offer to be prime minister?’
What is the situation, then, with financial assistance?
We’re still waiting. It will now be November before there’s any actual help. And backdated payments won’t prevent some small businesses going to the wall.
Everyone has known for over six months that energy prices will rise in October but the government has so far done nothing to help. The long, hot summer has already meant an increase for pubs in electricity usage to keep beers chilled. Some won’t survive.
Liz Truss has said she will introduce a temporary six-month cap on energy prices and create an ‘energy supply taskforce’, but that’s like using a glass of water to put out a forest fire.
Many small businesses are already further indebted by having to repay loans taken out under the Bounce Back Loan Scheme during the pandemic.
What would help?
The temporary reduction in VAT to 5% on food and soft drinks during the pandemic helped pubs but that was stopped in March this year. There is a call for another reduction in VAT but across the board rather than on a limited number of goods. This would provide some immediate relief and prevent some collapses.
When Rishi Sunak was chancellor, he said small businesses were “the heart of our economy”. Nothing the government is currently doing backs up that statement.
What are your customers saying about the energy crisis?
If I did a straw poll tomorrow, there would be a clear majority for nationalising energy. I’ve no doubt about that. And they’d be right!
