Peterborough beer maker Oakham Ales calls on new PM to flatten impact of energy crisis
and live on Freeview channel 276
A brewery in Peterborough is hoping for Government action to help ease the struggle employers are facing during the energy crisis.
The plea comes from Oakham Ales, in Maxwell Road, Woodston, which says it is tackling huge challenges as record levels of inflation and soaring energy cost drive up the cost of raw materials, production and distribution.
Advertisement
Hide AdAdvertisement
Hide AdNow the brewery is looking to the next Prime Minister – either Foreign Secretary Liz Truss or former Chancellor Rishi Sunak – to ensure a plan of action to ease the headache caused by rising energy costs is top of their in-tray from next week.
The call comes as fears grow that much of the hospitality industry, particularly pubs and restaurants, will be forced to close by a combination of rising prices and a fall in customer spending.
It follows a demand from the Cambridgeshire Chamber of Commerce and the British Chambers of Commerce for the Government to adapt a five point action plan to soften the impact of the crisis on businesses.
A spokesman for the brewery, which employs about 30 staff, said: “Dealing with the impact of the energy crisis must be a priority for the new Prime Minister – this is an opportunity for some creative thinking.
Advertisement
Hide AdAdvertisement
Hide AdHe added: “As always, a reduction in duty would be welcome."
The duty scale varies depending on the brewery size. Oakham Ales produces about 50,000 hectare litres of beer a year - equivalent to about 8.8 million pints and pays about £8.20 per hectare litre.
He said the business, which was already leaner after the Covid-19 pandemic, was now battling a triple whammy of price increases for raw ingredients, production and distribution.
He said the last few months had seen a huge increase in the cost of production of the brewery’s best selling Citra ale.
Advertisement
Hide AdAdvertisement
Hide AdThe cost of producing a pint of beer rose last year by about nine per cent but that soon increased to about 12 per cent as energy prices started to climb and inflation hit a 40 years record high of 10.1 per cent in July.
The spokesman added: “The prospects of what might still to be happen are frightening.”