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BBPA Budget response – Good news for pubs in the short-term, long-term stimulus still needed to secure the great British pub
BBPA responds to Chancellor’s Budget worth over £1.5 billion for brewers and pubs Responding to the Chancellor’s Budget speech, Emma McClarkin, Chief Executive of British Beer & Pub Association, said: “We welcome the Chancellor’s announcement of continued support for the devastated pub sector in the form of additional grants, as well as extensions to the job retention scheme, 5% hospitality VAT rate and business rates holiday. “The new grants are worth £400 million for pubs and will go some way in helping many of them survive through to the time when they can reopen and operate viably. It is, however, crucial that the Government ensures all pubs benefit, including those that are part of a group, by removing the current State Aid cap. “The extension of the job retention scheme until September will help save thousands of pub jobs. Worth £700 million to our pubs and brewers, it gives the sector time to reopen and rebuild trade before bringing all staff back, which would otherwise be too costly and unviable whilst still facing trading restrictions until end of June. “It is imperative that the Government allows pubs to operate without restrictions as planned from 21st June. This will give them the best chance to get back on their feet and serve their communities. “Extending the 5% VAT hospitality rate until September and at 12.5% thereafter is most welcome. We calculate it is worth £485 million to pubs. With all pubs having been closed for so long, the lower VAT rate has been of limited benefit so far, tens of thousands of pubs will not benefit from this until they reopen on 17th May at the earliest and then still at reduced capacity. However, wet led pubs will be especially disappointed again that the reduction will not apply to all beverages so they too can benefit from this. “We campaigned hard for an extension of the business rates holiday and the Chancellor announced a 100% cut on rates until June and up to a 66% cut for the following 9 months. This is good news, but the proposed cap will mean many pub businesses will not benefit fully from this. We await to see more detail. “Having called for a cut in beer duty and being a staunch supporter of the Long Live The Local campaign, a beer duty freeze will be seen as much needed short-term relief for the sector. However, the Chancellor has only partially listened to the 500,000 campaign supporters who signed the petition calling for a cut in beer duty. We now hope the Government will use the ongoing Alcohol Duty Review to cut beer duty to support our brewers and pubs and level the playing field with other brewing nations. The Government must support and promote Britain’s extraordinary pub and brewing sector in the way other Government’s support their domestic industries. “Overall, this is a good Budget for pubs and breweries in the short term, reflecting just how vital they are to the social, cultural and economic fabric of our communities. “However, this is just the start of the journey on the hard road to long-term recovery for our sector. The Chancellor has made it clear today he recognises the vital role local pubs play in their communities. Now he must continue that commitment by ensuring Britain’s pubs and breweries are supported in the long term. This should start by extending the VAT cut on hospitality to all drinks until at least the end of the year. We also need a fundamental reform of VAT, business rates and beer duty to ensure that the thousands of pubs and breweries across the UK can thrive and help drive the social and economic recovery we urgently need.”
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Welsh Beer & Pub Association launches on St David’s Day to promote brewers and pub operators of Wales
New association will work with BBPA, Welsh Government and UK Government A new trade association has been launched today, on St David’s Day, to promote brewers and pub operators in Wales. The Welsh Beer & Pub Association will represent the wide range of beer and pub businesses in Wales, campaigning for policy outcomes that help protect and grow the sector. It will work alongside the British Beer & Pub Association, the Welsh Government, the Senedd and UK Government to achieve these outcomes. There are over 3,000 pubs in Wales and approximately 120 breweries, with the overall Welsh beer and pub sector supporting 42,000 jobs and contributing nearly £1bn in Gross Value Added to the economy. Emma McClarkin, Chief Executive of the newly formed Welsh Beer & Pub Association, said: “With over 3,000 pubs and 120 breweries, Wales is a vital hub for our sector. In recognition of this, we are proud to launch the Welsh Beer & Pub Association – a body solely aimed at promoting Welsh brewers and pub operators and given them a much-heard voice with both the Wales Government and UK Government. “Given that today is St David’s Day, it could not be a better day to launch this important new trade association. I urge pubs and brewers who feel they need a voice to get in touch to find out how we can help them.” Mark Davies, CEO of Hawthorn, who own 26 community pubs in Wales and Chairman of the Welsh Beer and Pub Association: “Pubs and the brewing industry have been at the heart of Welsh communities for centuries. As a Welshman born and bred, I’m proud to stand alongside my industry colleagues as part of the WBPA, to promote the beer and pub sector in Wales. The people of Wales are proud of their heritage and pubs are part of the social fabric that makes Wales such a great place to live and work.” Minister for Culture, Sport and Tourism, Lord Elis-Thomas, said: "The brewing and pub sector is a vital contributor to Welsh communities as well as for the Welsh economy. The last 12 months have been uniquely challenging for hospitality and their supply chains and for that reason I have valued the positive working relationship that has been developed with the industry. I look forward building on the constructive discussions we have had over the course of the pandemic, and to working with the Welsh Beer and Pub Association as the sector begins its journey along the road to recovery." Jack Sergeant MS, Chair of the Cross-Party Group on Beer and Pubs, said: “I know the huge role the brewing and pubs sector plays in our communities and its importance to the Welsh economy. The launch of the Association is brilliant news and I look forward to working closely with them to secure a bright future for pubs across Wales as we look to rebuild post-Covid.”
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New research shows overwhelming public desire for Government to help Britain's pubs and Breweries in upcoming Budget
Research commissioned by The British Beer and Pub Association and Long Live The Local, the campaign to cut beer duty and help Britain’s pubs, has today revealed that Brits think the Government should support local pubs and breweries in the Budget on 3 March. The research, conducted by YouGov, found that 3 in 4 Brits (76%) believed that pubs are important to local communities – a 4 percentage point increase since July 2019. 64% also said that pubs are important in securing the future of local high streets. The British Beer and Pub Association and Long Live the Local said the findings show that the Coronavirus crisis and lockdowns have meant communities value their local pubs and breweries more than ever. When asked if they wanted the Chancellor to help pubs in the forthcoming Budget, only 12% of respondents thought the Government should not do anything. 52% of people supported a cut in business rates, 46% of people wanted to see a cut or freeze in beer duty and 42% supported a reduction on VAT on pub food. More than 6 in 10 people (62%) also said they think the Government should use the Spring Budget to support Britain`s brewing industry with 54% of people thinking a cut in beer duty should be included in the Budget, as 7 in 10 (69%) thinking that the level of beer duty in the UK, which is 11 times higher than that in Germany, is unfair*. Emma McClarkin, CEO, British Beer & Pub Association said, “These findings serve as a much-needed reminder to how important local pubs are to our communities. People miss their local and the sense of community it brings. They also miss drinking a proper pint of their favorite beer. When we are through this crisis it is pubs that will bring our communities together again and provide that return to normality. Now it is on the Chancellor to listen to the people and give the support to pubs and brewers they want to see. That is a beer duty cut that will help our hard-hit locals get back on their feet and continue to serve their communities across the UK” David Cunningham, Campaign Director of Long Live the Local, says, “This research shows how much people want Government to help Britain’s pub and brewing sector in this Budget -especially following the extremely tough year they have faced. This chimes with the strong support we have seen for our campaign. More than 500,000 people have signed a petition and 275,000 have written to their MP urging them to cut beer duty. The Chancellor must understand the plight faced by pubs and brewers and listen to all those who for three years have been asking for a cut in beer duty– it’s never been more needed.” To add your name to the petition, please visit www.longlivethelocal.pub