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20,000 hospitality venues to miss out on lockdown grants, putting over 1 million jobs at risk unless Government takes advantage of State Aid reforms
Trade associations write to Chancellor Rishi Sunak urging him to apply changes to State Aid The British Beer & Pub Association (BBPA), British Institute of Innkeeping (BII) and UKHospitality (UKH) have written to Chancellor Rishi Sunak urging him to loosen State Aid restrictions, so that vital cash grants he promised to UK pubs and hospitality businesses in tier two and tier three lockdown areas can reach them. According to the trade associations, if the Chancellor doesn’t apply the changes to State Aid restrictions, 20,000 hospitality venues and pubs across the UK will not receive the support he has allocated to them – putting the one million plus people they employ’s livelihoods at risk. Until recently, State Aid rules directed by the EU meant that businesses could only receive up to €800,000 (£720,000) of cash support from the Government, which many businesses had already reached. However, since 13th October, the rules have changed enabling severely impacted businesses such as those in hospitality up to €3,000,000 (£2,700,000) in State Aid. Multiple operators of pubs and hospitality venues are therefore missing out on this vital support. In simple terms, an individual pub or restaurant could have claimed a £25k grant in May 2020, but a multiple pub or restaurant owning business would have been capped at claiming for a maximum of 28 sites. These businesses are therefore unable to access further grant support that is so desperately needed. Businesses hit by this rule, the trade associations say, employ around half of the hospitality workforce – over one million people. This makes getting cash grants to them particularly pertinent in order to protect the majority of hospitality jobs over the winter so they are there for the Spring once restrictions are lifted and the economy opens up again. Despite this, the Government hasn’t confirmed if it will allow businesses to access extra funds that would provide the help they desperately need, despite the trade associations asking Government for clarity on numerous occasion. According to the trade associations, if the Government doesn’t do this, pubs alone will miss out on grant support in the region of £50 million. The trade associations are now calling on the UK Government to apply the change to State Aid immediately and in the most flexible way possible, allowing pub and hospitality businesses to receive the grant funding they are eligible for and desperately need. In a joint statement they said: “Unfortunately, without applying changes to State Aid restrictions, some 20,000 hospitality venues and pubs will not receive the grants the Chancellor has rightly promised them. “Without the grants, many pubs and hospitality businesses will be lost forever and half of the hospitality workforce – over one million livelihoods – will be at risk. “The Government is hiding behind these EU rules which it has the ability to change. This cannot be the Chancellor’s intention, so he must now take advantage of the changes to State Aid rules to immediately unlock the grants our sector desperately needs. “If action is not taken by the Government or the Chancellor, thousands of businesses and over one million jobs will be at risk throughout the winter and might not survive to the spring and the economic recovery.”
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Worrying times ahead for pubs, brewers and suppliers in Nottinghamshire facing tier three restrictions and 9pm cut-off on off-license alcohol sales
BBPA responds to tier three measures set to be placed on Nottinghamshire and calls for support to be available to all pubs, brewers and suppliers to protect 13,500 jobs The British Beer & Pub Association, the leading trade association representing brewers and pubs, has today responded to the news that tier three lockdown measures will be placed on Nottinghamshire, severely impacting 823 pubs and putting at risk 13,500 sector jobs worth £268 million to the local economy. As part of the tier three restrictions in the county, off-license sales of alcohol will also be banned after 9pm. Emma McClarkin, Chief Executive of the British Beer & Pub Association, said: “This is a very worrying time for pubs, brewers and their wider supply chain in Nottinghamshire. “548 pubs who don’t serve substantial meals will be forced to close. 275 food led pubs will be able to remain open if they choose, but their trade will be decimated. “13,500 livelihoods are dependent on pubs in Nottinghamshire. Government financial support now needs to be delivered to them as quickly as possible to help their cash flow and cover their immediate costs. “The 9pm curfew on off-license alcohol sales is also greatly concerning. It will severely impact brewers whose ability to sell through retail outlets is vital to their survival whilst so many pubs are closed. “It is hugely worrying to see this additional alcohol curfew put into place with absolutely no evidence to show how it will fight the spread of the virus. SAGE itself has already called into question the effectiveness of the 10pm curfew on hospitality and this 9pm cut-off for off-license alcohol sales in Nottinghamshire is yet another example of layer upon layer of restriction with no proper evidence for its effectiveness in the first place. “Grants must also be made available to the brewers supplying pubs and off-licenses, who will lose a big proportion of their business overnight from this. “We urge the Government to review these restrictions as soon as possible. “Pubs are the heart of their communities and are safe and regulated environments to both eat and drink in. Beer is quintessentially British and a low alcohol option. Government investment in them now will preserve them for generations to come.”
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Changes to Business Rates required for pubs to survive and thrive after COVID-19
British Beer & Pub Association responds to Treasury call for evidence on Business Rates Calls for introduction of digital sales tax The British Beer & Pub Association (BBPA), the leading trade association representing brewers and pubs, has today responded to the Treasury’s call for evidence on Business Rates. In its response to the Treasury, the BBPA has expressed that a much-improved Business Rates system is required if pubs are to survive the COVID-19 crisis and thrive afterwards. As part of this, it has called for a digital sales tax to ensure that companies who primarily or exclusively operate online are paying their fair share in tax too and to enable the business rates multiplier to be reduced. The trade association has also stated several other measures the Treasury must take to enhance the current Rates system, including: Extending the 100% Business Rates holiday beyond March 2021 A lower business rates multiplier for pubs Investment relief to boost growth Extending small business rates relief More regular revaluations of Business Rates by the Valuation Office Agency Emma McClarkin, Chief Executive of the British Beer & Pub Association, said: “A fair and sustainable Business Rates system is critical to support our sector both now and into a strong recovery. “Pubs overpay on Business Rates by some £500 million. Given the current circumstances they find themselves in over COVID-19, and the fact they are a vital community hub, that is simply not right or fair. Companies that operate overwhelmingly online businesses must also pay their fair share, which is why we are calling for a digital sales tax that levels the playing field with more bricks and mortar based businesses. “A much-improved Business Rates system is required too. It is on an unsustainable path for our sector right now and must change if pubs are to survive COVID-19 and thrive after it. “We are also calling on the Government to give a firm indication soon that they will extend the current Rates holiday and other rates relief to the sector.”