Hospitality businesses face mounting costs
(Picture: PA Media)Sadiq Khan has warned that the cost-of-living crisis could be "fatal" for London's pubs and restaurants.
The Mayor said spiralling energy costs, staffing shortages and fewer customers were already hitting the capital’s hospitality businesses and bosses were as worried about the looming economic crisis as they were about closures during the pandemic.
Mr Khan was due to be joined by celebrity chef Tom Kerridge at a panel discussing the cost of doing business at the Labour Party Conference, in Liverpool, on Monday.
Speaking ahead of the event he said: “London bars, restaurants and cafes are telling me that they are as worried about the looming crisis as they were about the effect of the pandemic on business.
“The combination of rocketing food and supply chain costs, customers’ disposable income being hit by the cost-of-living crisis and increased business costs mean this period could be fatal for many of London’s favourite hospitality businesses.
“If the Government is serious about wanting economic growth they must support hospitality and other struggling industries - which provide so many jobs and huge revenues to the exchequer.”
Last month bosses from six of the UK’s biggest brewers wrote to the Government, claiming soaring energy prices were more of a danger to British pubs than the Covid crisis.
They warned of significant job losses and business closures unless action was taken as it was during the pandemic.
The Government distributed grants to local authorities for businesses forced to close during Covid and funded the staff furlough scheme.
It also spent almost £850 million on the Eat Out To Help Out programme to boost restaurant takings following lockdown.
The new Energy Bill Relief Scheme announced this month will provide a discount on wholesale gas and electricity prices for businesses and public sector organisations, such as schools and hospitals whose energy cost have been hit significantly inflated in light of global energy prices.
