Hartlepool hospitality chief warns of 'graveyard' due to energy cost concerns in letter to Boris Johnson, Liz Truss and Rishi Sunak

Darab Rezai, chairman of Hartlepool Licensing Association, which represents the town’s bars, cafes and restaurants, has written an open letter to Prime Minister Boris Johnson, the Chancellor, Tory leadership candidates and local politicians expressing his fears.

He says hospitality businesses are at serious risk of closure following Covid, increases in the cost of ingredients and National Insurance, and now big gas and electricity price hikes.

Mr Rezai said utilities are businesses’ biggest overheads at up to £700 a week for a typical restaurant and are set to go up even more in January.

He says action is needed quickly by those in power to protect hospitality businesses and jobs, estimated to be more than 2,700 in Hartlepool.

Mr Rezai, who operates a number of premises including Harbour View, at Hartlepool marina, said: “Covid had a massive impact. Businesses have exhausted all their resources.

"They are already under tremendous pressure. Gas and electricity is bigger than rates and rent.

"Five or six outlets have come to me and said they are closing very soon. I’m sure there would be a domino effect.”

He said businesses were being “held to ransom” by faceless energy companies as premises’ fixed contracts come to an end and the energy price cap is due to increase in January.

Mr Rezai said hospitality businesses need to run machinery and equipment such as extractors almost constantly adding to the cost.

He added: “If the Government doesn’t step in and somehow take charge of energy providers we’re going to have a lot of places going out of business. It’s frightening.

"I’m horrified Liz Truss and Rishi Sunak are not talking about the energy impact on businesses, especially hospitality.

"Hospitality represents 7.1% of employment in the UK.”

M Rezai has also written to leaders at Hartlepool Borough Council and town MP Jill Mortimer.

Councillor Mike Young, deputy leader and chair of economic growth and regeneration at the council, wrote to Business Secretary Kwasi Kwarteng raising their “significant concerns” about the impact of inflation and especially the “unprecedented” gas and electricity increases to businesses.

He said: “Without urgent action and financial support, permanent damage will be done as companies fail”.