Portsmouth business facing financial oblivion if new prime minister doesn't tackle ballooning energy bills

The desperate message from worried entrepreneurs comes ahead of a new prime minister being announced today, with either Liz Truss or Rishi Sunak becoming the next leader of the Tory party.

Pubs, cafés and small independent companies, which for so long have been the lifeblood of high streets, after facing spiralling electricity bills, which owners fear could spell the end for them.

Southsea’s Wedgewood Rooms venue – which has broken top live music acts for decades – is facing an eye-watering 300 per cent hike in electricity bills.

While the cost of living crisis has already proved too much for some businesses, with Drayton’s Zettie’s Bistro, in Havant Road, announcing its closure.

Taking to social media, the business said: ‘We are extremely sad to announce due to the high cost of living that Zetties has closed its doors for good.

‘We have thoroughly loved serving our customers for the past five years and thank you from the bottom of our hearts for supporting us throughout this time.’

In Southsea, fears are rife that other struggling firms could soon fall on the sword of ballooning bills.

Martyn Knight, one of the owners at the Southsea Coffee Co, in Osborne Road, said: ‘We're on the precipice. My bill so far has gone up 500 per cent and it's going to double again in one day on September 8.’

He added: ‘The government has been missing in action when we're at a stage where we really need support.’

Alex Vernal, landlord at The British Queen, in Queen’s Road, Fratton, runs the pub with his wife, Sam.

He has a contract with an energy company which means his bills are not soaring yet – but he fears this won’t last.

'If I hadn't locked in to a contract I would be going under,’ Sam said. ‘I might die a slow painful death, but I know there are lots of people who are just going to be killed straight away, you can’t fight against it.’

Phil Estell, landlord of the Golden Eagle, in Delamere Road, Southsea, has six months left of current energy contract and is expecting a 200 to 300 per cent rise in costs.

‘A lot of pubs are going to go out of business,’ said Phil. ‘Either they're going to have to put up the prices so much that the flow of customers dries up, or they're just going to have to fold the business.

‘Everybody's talking about the pandemic and the situation in Ukraine, but this isn't really about any of that. Look at the amount of profit the energy companies are making.

‘The government ought to be looking to nationalise the [energy] industry.'

Paul Fleming, co-owner of the Emsworth Aquaria and Reptiles in Drayton said the reptile industry was at a ‘critical’ point. The 38-year-old, who has dedicated years of his life to the shop, is on a two-year energy contract, which is due to finish in May 2023 but has no idea what the future holds after this.

‘This shop has been my life. It has been my life since I was 15 years old,’ said Paul, who also works as a doorman. ‘‘I have until May to make a decision and I just don’t know which way to jump.

‘Potentially losing the shop is like someone coming along when I’m 40 and resetting my life.

‘It is my whole life and it has not been an easy life. I have worked two jobs for years and put in a huge amount of hours here.’

Michele Di Lorio, co-owner of Aroma Caffè Bar, in Havant Road, Drayton, added: ‘We just need the government to help us out really. We are pretty lucky because we have good customers but something needs to be done.

‘When we started two years ago it was £420 a month and the last one we had for August was £890. It is crazy and it is really really tough.

‘Bills have doubled in two years. It is really troubling and I’m sure it will only go up.’