The British Beer and Pub Association (BBPA) has commented on UK inflation rates rising to the highest level in six months, with RPI and CPI rising to 3.5% and 2.7% in August respectively. Commenting on the rise of inflation, BBPA Chief Executive Brigid Simmonds said: “This significant rise in inflation is worrying news for pubs and brewers alike. Beer duty is linked to RPI, which rose by 3.5% in August, meaning pubs and brewers face a steep hike in taxes just like under the dreaded beer duty escalator. As a consequence, Britain’s Brewers could see an increase of over £100 million in tax in the next Budget. The misery for pubs would be compounded by CPI increases in business rates. “£1 in every £3 spent in pubs already goes to the taxman and under the beer duty escalator, which saw sustained increases to beer tax, 5,000 pubs closed and 58,000 jobs were lost. It’s clear that action is needed by the Government to alleviate these cost pressures pubs face, else we risk losing them forever. This is why we are backing the campaign longlivethelocal.pub to call on the Government to cut beer tax and support local pubs.”
The British Beer and Pub Association (BBPA) has responded to the publication of the Migration Advisory Committee’s (MAC) report on the impact of EEA migration in the UK. Commenting on the report, BBPA Chief Executive Brigid Simmonds said: “We broadly welcome the MAC report and the evidence it provides that migrant workers play an important role in the UK economy, without having a major effect on the employment of UK workers. Increased productivity is vital to the economy and the MAC report acknowledges this, as does the Government’s Industrial Strategy. With this in mind, we’d urge the Government to support the proposed Tourism Sector Deal and its emphasis on skills, which the BBPA is prepared to back with financial contributions if the Government supports it. “We have previously called for a review of the Tier system and welcome the proposal from the MAC that the Tier 2 visa bracket be expanded to cover a wider range of occupations. However, we have serious concerns about retaining the salary cap of £30,000 as pub chefs, who are very much in short supply within our sector, would in many cases not meet the cap. Nonetheless, the proposal to reduce the qualifications for the Tier 2 visa bracket from RQF6 to RQF3, which would consider the experience offered by pub chefs, rather than just qualifications, is most welcome. “It is good that the MAC report has recommended that the administrative burden of the Tier system be reviewed for SMEs. No small pub could take on the current sponsorship requirements as they stand, let alone the cost and bureaucracy that currently goes with it. “Whilst broadly welcoming the recommendations of this latest MAC report, we still feel that the MAC does not recognise the important role of the hospitality industry in the UK and the serious issues that migration caps will bring to the sector. On average, as many as 24% of workers in pubs are from overseas – rising to as much as 80% in some urban areas – meaning that any cap which does not recognise the deficit in talent will cause hardship for pubs and could ultimately lead to more closures. This is why we continue to call for the extension of the Youth Mobility Scheme, which allows young people up to the age of 30 from a prescribed list of countries to work in the UK for up to two years. Considering some 42% of employees in pubs are under the age of 25, extending the Youth Mobility Scheme to the whole of the EU is most welcome, as has already been proposed in the Chequers Agreement. “We look forward to building on the MAC report in our discussions with the Government, but would urge more emphasis on the requirements for soft skills, which are so vital to the pub sector and contribute to the multi-faceted nature of our society and communities.”
The British Beer & Pub Association (BBPA) has today published the latest edition of its operating cost guide for tenants and lessees. The data is intended to help those wishing to take on a tenanted or leased pub business to be as well informed as possible about the current costs involved in running a pub. The BBPA’s guide provides valuable information for tenants and lessees on typical operating costs in the pub sector. The guide gives existing tenants and lessees the opportunity to benchmark their own business and compare their own costs against these published industry norms. Updates included in this year’s guide are: Pay-TV costs for all pub models Live music costs for all pub models A town/country model which brings the total number of pub models featured in the guide to nine The guide shows the average cost of running a leased and tenanted pub over a range of pub models based on turnover and business types. It covers a wide range of pubs, from those with little in the way of food sales, to those that are largely food-led, and takes account of the significant variations that exist in the cost base, even within those pubs that are broadly in the same category. As in previous editions, the guide’s input data and sources change each year, so the information should not be used to determine trends from year to year. The guide also makes clear that all pubs are unique and that actual costs incurred will be dependent on the different aims and styles of the business according to the location, the market and the skills of the tenant or lessee. As well as providing average costs, the guide also includes the minimum and maximum operating costs, providing a range of scenarios across different types of business. BBPA Chief Executive Brigid Simmonds OBE said: “Whether you already run a pub or are thinking of taking one on, this new report is a must-read. It includes essential information on the current costs involved in running a Great British pub and can be downloaded – free of charge – from our website.” The full guide can be downloaded from the BBPA website here.