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Landmark ruling on insurance a boost to pubs and brewers
BBPA welcomes UK Supreme Court judgment meaning insurers will have to pay out on business interruption insurance The British Beer & Pub Association (BBPA), the leading trade association representing brewers and pubs, has today welcomed the UK Supreme Court’s judgement that insurers will have to payout on business interruption insurance. The BBPA has been very vocal and public in its support for the case to make insurers payout, which was led by the Financial Conduct Authority. A BBPA member survey back in May 2020 found that 56% of sector businesses had claims for Business Interruption cover rejected. Separate research from the British Institute of Innkeepers in the same period found that just 3% of pub businesses had been successful in receiving a Business Interruption insurance claim. Emma McClarkin, Chief Executive of the British Beer & Pub Association, said: “This landmark ruling is great news for pubs and brewers who hadn’t received payouts on Business Interruption insurance thus far. It is a glimmer of hope in what is an incredibly tough time for our sector. “The lack of payouts over insurance claims has added to the terrible woes and uncertainty our sector has faced over the last 10 months. It is why the BBPA backed the FCA in its campaign to resolve the issue. “While our sector is far from out the woods yet, this announcement helps resolve some of the uncertainty it has faced on insurance cover and is warmly welcome.”
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Pubs will be calling ‘mayday’ if they cannot reopen until May
BBPA says far more financial support from Government will be needed if pubs are not to open until May The British Beer & Pub Association, the leading trade association representing brewers and pubs, has today responded to speculation that pubs may be forced to stay closed until May. The trade association has said pubs across the UK will be lost for good if they cannot reopen until May 2021 and do not get extended financial support from Government. The trade association has also said the Government needs to be clear on its roadmap for the reopening of pubs. Emma McClarkin, Chief Executive of the British Beer & Pub Association, said: “We really hope that the speculation about pubs being forced to stay closed until May is not true. We strongly believe that pubs are safe places to socialise and can play an important role in our social and economic recovery. “If pubs are forced to stay close until May, it would mean they have faced 14 months of lockdowns and restrictions. How on earth could the Government expect them to survive? “UK pubs will be screaming ‘mayday’ long before a May reopening without significantly more financial support from Government. “Sadly, these rumours are another example of the unfair targeting of pubs and have no thought for hardworking publicans and communities across the country who fear the loss of their homes, livelihoods and heart of their communities. “The Government has a duty to tell publicans when it plans to let them reopen with a clear roadmap alongside the vaccination programme. If it won’t be until May then it needs to extend financial support for them to survive and to brewers whose businesses also face jeopardy. “In the more immediate future this means an extension to the Chancellor’s latest grant support package and not just for pubs, but also breweries. In the longer term it means extensions to the Business Rates holiday and VAT cut, as well as a beer duty cut throughout 2021 and beyond. “Without such support, local pubs in communities across the country will be lost forever. We hope though that we can open safely and serve our customers and communities as soon as possible.”
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New lockdown grants worth £277 million are a lifeline to pubs
BBPA welcomes new lockdown grants, but says they must be delivered immediately to pubs The British Beer & Pub Association, the leading trade association representing brewers and pubs, has today welcomed an announcement by the Chancellor that pub businesses are to receive a one-off grant worth up to £9,000 per property to help them through the latest lockdown. The trade association, which has been campaigning for the Government to significantly increase its financial support to brewers and pubs, said the announcement was a lifeline to pubs across England who otherwise were at very real risk of closing for good. The BBPA is now urging the Government to deliver its new grants to businesses immediately. It is also calling on the Government to provide the same levels of grant support to brewers. Emma McClarkin, Chief Executive of the British Beer & Pub Association, said: “We welcome this much-needed support from the Chancellor, worth £277 million to UK pubs. It is the lifeline we have been campaigning for to save our pubs and help them survive through to the Spring. “Without this support, pubs across England were at real risk of being lost for good at the beginning of this year. We had been anticipating permanent closures in the very short term without it. “Given that the future of so many pubs hang by a thread, it is essential that the Government deliver these grants to pub businesses immediately. If the grants take weeks or months to get to the pubs they are meant for, it will be too late. We stand ready to work with Government and Local Authorities to ensure the grants are delivered at pace. We also need confirmation from Government that the new State Aid rules will allow businesses access to these grants. “The grants will mean many pubs may now be able make it through until spring. The Government now must also provide the same levels of support to brewers who have suffered months of closure of a major trading channel in pubs, but are not eligible for the support announced today. “In the coming months, the Government must also share how it will help our sector to play a leading role in the economic recovery when it can reopen, by extending stimulus support such as the Business Rates holiday and VAT cut, along with further initiatives including a beer duty cut. The sooner we hear of the long term support for the sector the better.”