BBPA highlights that more financial help will be required to help thousands of community pubs where food is not a focus, as well as the nation’s 2,000 breweries The British Beer & Pub Association (BBPA), the leading trade association representing brewers and pubs, has today warmly welcomed Rishi Sunak’s positive package of support as a helpful first step on a long road to recovery, especially for food led pubs and those with accommodation and will help secure jobs. However, it has also highlighted that further support will be required to help the thousands of community pubs and more than 2,000 UK breweries get back on their feet. The Chancellor announced a cut to 5% on VAT for accommodation and food in hospitality. He also announced a ‘eat out to help out’ scheme to run during the month of August, but which will only apply to food and non-alcoholic drinks. The trade association said the sector-specific VAT cut, which it had called for, would be a huge boost for pubs that serve food and offer accommodation, and would also help compensate for an expected long period across Summer and beyond of reduced sales and revenue compared to before lockdown. It also said the Chancellor’s ‘eat out to help out’ scheme, where Government will cover 50% of the cost of food in hospitality up to £10 per person per visit, will help encourage pub goers back to their local pubs where they offer food. However, for those pubs where revenue is more drinks led, the announcement today provides less help, the BBPA said. The trade association also welcomed the Job Retention Bonus, stating it hoped it would help the sector to bring back as many of its furloughed staff as possible. It had previously estimated that 90% pub staff were furloughed. The trade association also welcomed the announcement of the ‘kickstart job scheme’ for young people aged between 16 and 24 on Universal Credit, subsidising the costs of work placements for them in businesses. Pubs already directly employ 600,000 people and 43% of them are under 25, making them a vital source of jobs for young people. The trade association highlighted that the pub and brewing sector has huge potential to create thousands of new jobs and employ more people, but to do this it needs to be thriving, not just surviving. This requires more support in the medium term directed at all pubs and brewers so they can help lead with the economic recovery. These measures include a significant cut to beer duty to bring the UK in line with other European countries who pay far less tax on beer, and a fundamental review of the business rates system so that pubs no longer pay an unfair share of them. Emma McClarkin, Chief Executive of the British Beer & Pub Association, said: “The chancellor has communicated clearly that pubs and hospitality are safe and open for business. “The positive measures announced today are a welcome first step on what we believe will be a long road to full recovery for our sector. “These initiatives, which we have been calling for, will be huge for pubs that serve food and offer accommodation, and will also help compensate for an expected long period of reduced sales and revenue for pubs. “The ‘eat out to help out’ scheme, taking place in August, will also help stimulate visits to thousands of pubs that serve great food. It will help show to consumers that our pubs are back open for business. “Of course, for those pubs that do serve significant amounts of food or offer rooms to stay in, the cut to VAT for these to 5% will be a huge boost. Whilst the measures announced today will help food led pubs, those who just serve beer may feel they are left wanting. “The Job Retention Bonus will help our sector to bring back as many of its furloughed staff as possible - with 90% of pub staff furloughed, it should help protect many jobs. “Our pubs directly employ 600,000 people – 43% of which are under 25, making them a vital source of employment for young people in communities across the UK. We therefore welcome the ‘kickstart job scheme’ announced today for young people on Universal Credit. “The pub and brewing sector has huge potential to create thousands of new jobs and employ more people, but to do this it needs to be thriving, not just surviving. This will require more support in the medium term directed at all pubs and brewers so they can help lead with the economic recovery. These measures include a significant cut to beer duty to bring the UK in line with other European countries who pay far less tax on beer, and a fundamental review of the business rates system so that pubs no longer pay an unfair share of them. “Such measures will ensure our pubs thrive and continue to bring together people from all walks of life as they have done for centuries. We look forward to these measures being announced in the Government’s planned rebuild phase.”
BBPA highlights how sector can help lead the economic recovery of UK ahead of Chancellor Rishi Sunak’s fiscal statement and expected stimulus package The British Beer & Pub Association (BBPA), the leading trade association representing brewers and pubs, has today urged Chancellor Rishi Sunak to cut VAT, Business Rates and beer duty for brewers and pub businesses as they begin their long and slow road to recovery after lockdown. The trade association said its sector could, with the right support, help drive the economic recovery of the UK after the COVID-19 lockdown. Despite pubs and brewing having been one of the hardest and longest hit sectors during the lockdown, and one of the highest taxed, it is trying hard to get back up and running as soon as possible – with BBPA members indicating that around 80% of their pubs will reopen in the coming weeks. While the sector has reopened in England, it still faces a difficult road to recovery. Pub trading levels this first weekend out of lockdown were low and will remain low and operationally unsustainable until consumer confidence fully returns. Without further significant and immediate support, many businesses will not be able to survive until then. For a full and sustainable recovery of the beer and pub sector, helping deliver growth for the UK economy and protecting jobs and local communities across the country, the BBPA has urged Chancellor Rishi Sunak to take three bold but critical steps in his stimulus package: Cut to 5% the rate of VAT on food, drink and accommodation in the hospitality sector The BBPA says a cut to 5% in the rate of VAT on food, drink and accommodation in hospitality would boost pubs and the brewers that supply them, and signal to consumers that the sector is open for business. The BBPA believes that the near-term demand stimulus of cutting VAT to 5% would bring an immediate boost to the sector helping to secure hundreds of thousands of at-risk jobs. Particularly for the 43% of the 600,000 directly employed in pubs by the sector that are under 25 years old, ensuring their life chances are not permanently disadvantaged as a result of the COVID-19 lockdown. As a highly regionalised industry - pubs are present in every region of the UK and breweries are often found in market towns and villages outside of major urban centres - a VAT cut to boost brewers and pubs would have a disproportionately high impact on under-invested regions. The BBPA estimate that cutting VAT to 5% would secure over 350,000 jobs in the sector. Extended Business Rates relief BBPA data shows that pubs pay five times their fair share of business rates. Per pound of turnover, pubs pay more in rates than any other sector. If the current Business Rates relief holiday ends and rates revert to normal levels in April 2021, then this will likely push many pub businesses still struggling to pay lockdown debt and return to full trade over the edge, leading to permanent closure for many. The BBPA says that extending the Business Rates relief for pubs is therefore crucial if they are going to play a fuller part in the economic recovery of the UK. 25% reduction in beer duty The UK has one of the highest beer duty rates in Europe – its duty rate is eleven times higher than Germany or Spain’s and three times higher than the average rate in Europe. The BBPA says the Government has the opportunity to level the playing field, backing Britain’s national drink and home-grown brewing heritage. Modest cuts and freezes in recent years have generated positive results for jobs, cost of living, capital investment and beer sales. It has been proven to work. But right now the BBPA says the Government needs to go much further. It says a 25% reduction in beer duty over the course of Parliament would signify a vote of confidence in a major domestic industry. Emma McClarkin, Chief Executive of the British Beer & Pub Association, said: “COVID-19 has hit our sector especially hard, but our brewers and pubs have a key role to play in getting the economy back on its feet and, crucially, boosting the nation’s morale. “Our pubs and breweries want to play a leading role in the recovery. But we can only do that if we have the right help from the Government. Especially as pub trading levels have started very low and will remain unsustainable for a long time until consumer confidence fully returns. In addition, our pubs and brewers face a range of punitively high taxes with currently £1 in every £3 spent in a pub going straight to the taxman. “The measures we have put forward are bold, but they are key to the future of communities across the UK and important British businesses. They are an investment for the future, not a cost. “Cutting VAT, Beer Duty and Business Rates would secure some 350,000 jobs. As a sector, 43% of those employed in our pubs are under 25 years old. So these jobs we’d save would ensure the life chances of our youngest are not permanently disadvantaged as a result of COVID-19. “Pubs are inclusive and public spaces – they help bring people together from all walks of life. They are the backbone of our high streets and at the heart of our domestic and international tourism sector. To lose our pubs would not just be an economic or jobs disaster, it would also be the end of many communities. We want to use our heritage to restore a sense of national unity and belonging by ensuring pubs remain at the heart of every town, city, rural and coastal community.”
Trade association says only a tiny number of pubs will be opening at 6am if any at all The British Beer & Pub Association, the leading trade association representing brewers and pubs, has today welcomed Prime Minister Boris Johnson’s call for pub goers to be responsible and follow measures put in place in pubs to ensure their safety, when they reopen from tomorrow. In his speech, the Prime Minister noted that pubs had gone to great lengths to ensure the safety of their customers as they reopen. Alongside the National Police Chiefs’ Council, UKHospitality and the London Nightime Economy Czar, the trade association this week issued a joint statement urging pub goers to follow guidelines and measures put in place in pubs, so everyone can enjoy them safely. Emma McClarkin, Chief Executive of the British Beer & Pub Association, said: “It is great to see the Prime Minister recognise the lengths our pubs have gone to in order to reopen safely from tomorrow. “We are all excited to see our locals reopen after so long and the wait is nearly over. We echo the Prime Minister’s call and urge pub goers who plan on visiting their local this Saturday to act responsibly, follow the measures in place and help pub landlords and staff to open in the best way possible. Doing so will ensure everyone can enjoy the return to the pubs we love so much, safely.” The trade association also responded to reports that No 10 Downing Street has confirmed that pubs will not be able to reopen until 6am on Saturday, citing that the overwhelming majority of pubs will not be opening their doors at 6am. This is because the time a pub can open and serve beer is based on its licence, and the vast majority of pub licences mean they cannot reopen and serve beer until 11am on Saturday. Commenting on this, Emma McClarkin, Chief Executive of the British Beer & Pub Association, said: “Whilst pubs in theory can reopen from 6am tomorrow, the reality is that only a tiny number of them will be opening at that time if any at all. Even then, it will be primarily to serve breakfast. The overwhelming majority of pubs have licences that mean they cannot open and serve beer until 11am on Saturday.”
We champion issues that matter to the beer and pub industry. These are causes our members are passionate about; whether it’s promoting beer as the nation’s drink, or campaigning against increases to beer duty and businesses rates that are so damaging to community pubs.