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Latest restrictions a “significant blow” to brewers and pubs who need more Government support
Trade association reiterates support for Government-led efforts to control the virus The BBPA has responded to the Secretary of State for Health and Social Care’s announcement that several areas in the North East of England would be placed under more stringent restrictions, calling it a “significant blow” but reiterating that the trade remains committed to working with the Government to control the spread of COVID-19. Responding to the announcement, Emma McClarkin said: “As an industry we recognise the need to continue to support the Government and local communities in managing the risk of rising infection rates. We take our responsibilities extremely seriously and our pubs will continue to adhere strictly to Government guidance ensuring that they remain a safe and welcoming place for socialising. “Our sector has been one of the hardest and longest hit by the pandemic. Pubs and brewers have worked tirelessly to get pubs safely open and stocked since July so this latest announcement is another significant blow. “Our data suggests that a third of pubs are still struggling to even break even which indicates that we are at a very delicate moment in our sector’s recovery. Consumer confidence is already very fragile and extra restrictions will inevitably have a further cooling effect on that, not only in the regions where they are in effect but also nationally. “It is vital that the Government recognises the unprecedented challenges that pubs and brewers are facing at this time. We are calling on them to immediately put in place a sector specific furlough scheme beyond October, extend the VAT cut and business rates holiday and make a substantial cut to the punitively high rate of beer duty in the Autumn Budget. These measures will help brewers and pubs work towards a safe and sustainable recovery.”
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£800 million business rates bill could be the last straw for thousands of pubs
The British Beer & Pub Association has today revealed that a business rates bill of £800 million for pubs across the UK could be the last straw for many, forcing them to close for good. Responding to the Business Rates Review launched this year by the Government, the first stage of which closes this week, the trade association explained that should the pub sector specific relief on business rates end as planned in March 2021, UK pubs will immediately face a bill of £800 million – an average bill of £25,000 per rate paying pub. According to the BBPA, thousands of pubs across the UK could come financially unstuck if faced with the large rates bill early next year, with as many as one-third of pubs at present struggling to break even post-lockdown – leaving them without the cash required to pay the business rates bill in the new year. The trade association has said that such a situation could likely see thousands of pubs close at the last hurdle in their long road to recovery post COVID-19 lockdown. Such a large bill will force many to close because these huge payments will be due well ahead of a full recovery of Britain’s brewers and pubs as life hopefully returns back to normal. The trade association is therefore urging the Government to extend its pub sector relief on business rates for at least another year, as part of the Government’s ongoing review and with submissions due this week. According to the BBPA, extending the rate relief for pubs could save thousands of locals and provide worthy investment for the Government, saving tens of thousands of jobs and securing future tax revenue from pubs in the longer term, as well as preserving thousands of pubs that are the heart of their communities across the UK. Emma McClarkin, Chief Executive of the British Beer & Pub Association, said: “Ending the Business Rates relief for pubs and handing them a bill of £800 million – an average of £25,000 per rate paying pub – could be the last straw for thousands of pubs. “Given that all these pubs made it through the lockdown – over 15 weeks without being able to open their doors – and have remained viable businesses despite social distancing and significantly lower footfall, it would be devastating for them to fall at the final hurdle in the post-lockdown recovery. “It would mean much of the Government’s vital support for the sector through lockdown would have been wasted. This is why we are asking the Government to extend the relief and help protect our great British pubs and the hundreds of thousands of jobs they support. “Investing in our pubs now will enable them to survive and thrive into 2021 and beyond, help lead the economic recovery and generate a larger tax revenue for the Government in the future.”
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Pubs pledge to continue actively helping Government manage COVID-19, but warn new restrictions will halt their recovery without further support
BBPA responds to Prime Minister’s announcement on social gathering changes and mandatory use of test and trace The British Beer & Pub Association, the leading trade association representing brewers and pubs, has today responded to Prime Minister Boris Johnson’s announcement on the changes to social gathering rules that will affect pubs. In his speech, the Prime Minister confirmed that the maximum number of people who can gather together will reduce from thirty to six, although this will exclude single households and support bubbles consisting already of more than six people and some exclusions. The Prime Minister also announced the mandatory use of test and trace by hospitality businesses. Responding to the announcement on the changes to social gatherings, Emma McClarkin, Chief Executive of the British Beer & Pub Association, said: “It is understandable that the Government are concerned about the recent rise in COVID cases. This concern is recognised by our sector and we will play an active role in helping Government manage this rise in infections by continuing to adhere to the current guidelines as well as embracing the new ones. “It is important to understand that the changes to social gatherings announced today will have an immediate cooling effect on public confidence to go out and visit our pubs. And will have a direct impact on trade that will be felt hard across an industry that is already struggling to get back on its feet. At such a delicate point in our recovery after a steady start this summer, as we head into Autumn and Winter where we expect trade to already slow down, this is very concerning. “With the announcements made today pubs and breweries will need much more support from the Government if they are to survive. An extension on business rates relief, continuation of the VAT cut to food and soft drinks, a sector specific furlough extension and a significant beer duty cut are needed now. These measures, along with the welcomed compensation for businesses closed as a result of local lockdowns announced earlier today by The Treasury, will help pubs survive, protect jobs and ensure they can continue to serve our communities. “Without this support from Government, and a clear message that pubs remain open for business and that the public should support them, our sector is in for a very rough end to an already devastating year. “It fully remains the case that, by following the existing guidelines, pubs remain an entirely safe place for people to meet up at. To reopen every pub had to complete a risk assessment and put measures in place to ensure the safety of customers. With these measures in place, and pubs’ active participation in test and trace, pub goers can rest assured they are safe.” In response to the mandatory participation of NHS test and trace in pubs and hospitality businesses across England, Emma McClarkin, Chief Executive of the British Beer & Pub Association, said: “As one of the few sectors actively participating in test and trace, pubs have already been fully playing their part to ensure people follow the safety guidelines and contain the spread of the virus. “Our sector will continue to play a leading role in supporting test and trace and all our members and the overwhelming majority of pubs across the UK are already using the test and trace system. In fact, pubs have been commended by Matt Hancock and Public Health England for their diligence and proactivity in working with NHS test and trace in England. “We implore any pub not confident on if they are following the existing or new rules correctly to get in touch with us or one of the many trade associations out there who will be happy to help. “Of course, it is important to remember that pub customers have a key role to play too in following the rules, and this means fully participating with test and trace.”