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  • BBPA welcomes Small Brewer Relief changes

    30 November 2021

    Trade association says changes, combined with Alcohol Duty Review proposals, are a positive move forwards The British Beer & Pub Association (BBPA), the leading trade association representing brewers and pubs, has today welcomed the Government’s proposals to improve the current structure of Small Brewer Relief (SBR) to more closely align with economies of scale and remove barriers to growth. The trade association hopes that the measures announced today, combined with the recent proposals set out in the wider Alcohol Duty Review, will build on the successes of SBR, whilst addressing the long standing distortions caused by the current structure.   A British Beer & Pub Association spokesperson said: “We welcome these changes to Small Brewer Relief, a scheme which provides a major boost to the UK’s small brewers. The proposals seek to more closely align with economies of scale and will address barriers to growth. “Combined with the recent duty freeze and proposals set out in the new Alcohol Duty Review, we hope this will now stimulate business growth and investment in Britain’s brewers of all sizes at a crucial time in their recovery post-covid.”

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  • BBPA responds to Government’s proposed changes to the Pubs Code

    23 November 2021

    The British Beer & Pub Association has today responded to the Government’s proposed changes to the Pubs Code. The trade association has particularly welcomed the Government’s decision to streamline the Market Rent Only (MRO) process, which both tenants and pub-owning companies called for. It has also reiterated the strength of the leased & tenanted model and in particular the partnership between pub-owning companies and tenants. Through the pandemic, pub-owning companies provided £285 million in reduced or cancelled rent to tenants. In the same period, they also provided additional support such as refunds on spoilt beer, COVID signage and PPE worth on average £27,000 to a pub.   A British Beer & Pub Association spokesperson, said: “We support these proposed changes to the Pubs Code, which recognise the value of the leased and tenanted model and the strong relationship between pub owning companies and their tenants. “In particular, the streamlining of the Market Rent Only process is welcome for tenants and pub-owning businesses alike and will facilitate negotiation and agreement. “During the pandemic leased & tenanted pubs received £285 million in reduced or cancelled rent and further additional support worth on average £27,000 per pub from pub-owning businesses. “The partnership between tenant and pub-owning businesses provides balance, security and investment – and has secured community pubs for generations to come. Looking ahead to the launch of the next statutory review in 2022 we will again reiterate this message to ensure the Code continues to support the relationship between tenants and pub-owning companies.”

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  • Brits turned to wine and spirits when pubs closed in 2020 lockdowns

    18 November 2021

    Total beer sales fell by 14.2% in 2020 due to pandemic and lockdowns, new BBPA data reveals The British Beer & Pub Association (BBPA), the leading trade association representing brewers and pubs, has today revealed that Brits drank more wine and spirits – but less beer – during the 2020 lockdowns. The finding comes from new data published by the BBPA in its latest 2021 Statistical Handbook – a ‘must read’ for anyone with an interest in the UK drinks sector. During the lockdowns of 2020, the percentage share of alcohol consumed through wine in the UK increased by 2 percentage points. Over the same period, the percentage share of alcohol consumed through beer decreased by 4 percentage points – with total beer sales in 2020 falling by 14.2%. It means that during 2020 and the height of the pandemic and lockdowns, Brits consumed 33% of their alcohol through beer and another 33% through wine, compared to 37% for just beer and 31% for just wine in 2019. Over the same period, Brits consumed 26% of their alcohol from spirits, up 2 percentage points from 2019. According to the BBPA, the key reason behind the shift in drinking habits during the pandemic was due to the forced closure of pubs, which led to Brits consuming wine and spirits bought from supermarkets and shops instead of draught beer bought over the pub bar. Typically, 7 in 10 alcoholic drinks served in a pub are beer. The trade association says the data shows how crucial pubs are to encouraging moderate consumption of alcohol through draught beer, which is on average 4.2% ABV. It also said the numbers demonstrated the damage of lockdowns to brewers, who lost a key route to market when pubs were forced to close during the lockdowns of 2020. At the recent Budget, Chancellor Rishi Sunak unveiled changes to modernise the alcohol duty regime in the UK to better incentivise the consumption of lower-strength drinks such as lower alcohol beer. This, the BBPA hopes, will aid British beer in growing market share once more, along with the reopening of pubs in 2021 where consumers are more likely to choose beer on draught over wine or spirits.   Emma McClarkin, Chief Executive of the British Beer & Pub Association, said: “Lockdowns and the shutting of pubs in 2020 meant Brits drank more wine and spirits, but less beer, than in previous years. “With the pubs closed, its clear people turned to wine and spirits from shops and supermarkets rather than beer. Because of this, overall beer sales in 2020 fell by 14.2%. In short, sales in supermarkets didn’t make up for sales lost from closed pubs. “It goes to show that when people visit the pub they primarily drink beer, which on average is 4.2% ABV, the lowest strength alcohol category and so ideal for moderate consumption. It is great to see the Chancellor recognise this and promote lower strength alcohol drinks with his changes to the UK alcohol duty regime announced in the recent Budget. “With pubs open and trading again in 2021, we hope customers will revert to choosing a beer at their local – a safe and managed space at the heart of communities throughout the UK.”   All statistics used in this press release are in the latest BBPA Statistical Handbook 2021 – available here.

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  • BBPA Budget response: support worth £440 million good news for pubs and breweries  

    27 October 2021

    BBPA welcomes Budget to support recovery of pubs and brewers     Responding to the Chancellor’s Budget, Emma McClarkin, Chief Executive of the British Beer & Pub Association, said:    “Pubs, brewers and beer drinkers will be toasting the Chancellor today for a range of business-boosting measures.    “Pubs pay 2.5% of Business Rates despite accounting for only 0.5% of rateable turnover – an overpayment of £570m. Cancelling the rates multiplier and cutting rates for pubs by 50% for one year is a much-needed boost to our sector in its fragile recovery.    “The 50% cut to business rates alone will save pubs £169 million. However, the cap of £110,000 per business is a huge dampener and means a significant number of pubs will not benefit from the relief at all.    “The multiplier freeze will save English pubs £32 million.     “The announcement that business rates revaluations will happen more frequently is also welcome, as is the one year improvement allowance. However, we remain concerned that for the longer term the inherent unfairness of the business rates system for pubs has not been addressed.     “The Chancellor’s decision to freeze beer duty instead of the RPI linked increase he had planned is to be warmly welcomed. It will save £177 million and secure 9,000 vital jobs across the country. Clearly, the Chancellor listened to the 134,000 people who signed the Long Live The Local petition calling on him to support pubs and brewers in the Budget.     “Pub goers will also be toasting the Chancellor today for announcing a 5% lower duty rate on draught beer worth £62 million. This is great news for our local pubs and recognises the crucial role they play in our economy and society. However, the overall beer duty rate in the UK remains amongst the highest in Europe. It is vital for Britain’s brewers, a world class homegrown manufacturing success story, that the overall beer duty burden is reduced – not just duty on draught beer in pubs.    “Beer is a low-strength product and breweries have invested heavily in developing a range of innovative, exciting and great tasting low and no alcohol beers. We therefore welcome proposals to reduce duty on lower-strength products as part of the proposed modernisation of the alcohol duty regime to better incentivise the consumption of lower-strength drinks.      “Overall, this has been a good Budget for pubs as they recover from the pandemic. The measures announced today will help pubs and breweries play a leading role in levelling up the economy and building stronger, more vibrant communities throughout the country.” 

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  • Brewing Sector Launches Roadmap to Net Zero Ahead of COP 26 

    25 October 2021

    BBPA, Zero Carbon Forum and Carbon Architecture present roadmap at Tennent’s Wellpark Brewery  The UK’s brewing sector has today launched a roadmap to net zero carbon emissions at the Tennent’s Wellpark Brewery in Glasgow.  Led by the British Beer & Pub Association, Zero Carbon Forum and Carbon Architecture – and launched ahead of COP 26 – the roadmap is specifically for brewers.  It will be complementary to the ‘Hospitality Roadmap to Net Zero launched’ by Zero Carbon Forum on 19th October, but distinct in recognising the unique challenges of brewing as a key part of UK food and drink manufacturing.  The roadmap provides guidance to the sector to help support breweries across the UK take on an ambitious pathway towards emission reduction targets, which come ahead of those set by the UK and Scottish Governments respectively.  In accordance with the Greenhouse Gas Protocol Corporate Account and Reporting Standard, the roadmap has been broken down into three ‘scopes’ for reporting purposes.  Scopes one and two of the roadmap, which focus on direct and indirect emissions from operations, outlines the ambition for brewers to reach net zero by 2030. Scope three, which focusses on indirect emissions from supply chains, describes the ambition for brewers to reach by 2040.     Scottish Government Business Minister Ivan McKee said:  “I am delighted to see the publication of the Brewing Sector Roadmap. It will help businesses decarbonise and set strategies which support our commitment that Scotland will reach net zero by 2045.    “It is particularly appropriate that the roadmap is launched in Glasgow shortly before the COP26 Summit, which provides an opportunity for Scotland to demonstrate its world leading climate action.    “I wish the brewing sector all the best with delivery of its plans.”    Emma McClarkin, Chief Executive of the British Beer & Pub Association, said:   “As a sector that takes sustainability seriously, we are delighted to work with Zero Carbon Forum and Carbon Architecture to launch this brewing specific roadmap, which provides British brewers with a clear pathway to a net zero, green future.  “Brewing is distinct from the wider hospitality sector and is a key part of food and drink manufacturing across the UK, so requires a bespoke roadmap for reaching net zero.  “Using this roadmap, brewers can continue their great work to date in reducing their environmental footprint and support the roadmap for the wider hospitality sector in reaching net zero.” 

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  • BBPA meets with HM Treasury ahead of Budget

    18 October 2021

    Trade association makes case for cutting Beer Duty, Business Rates and VAT so sector can lead levelling up agenda The British Beer & Pub Association (BBPA) has today met with HM Treasury officials to make representations for the brewing and pub sector ahead of the Budget on October 27th. In its meeting with HM Treasury, the BBPA highlighted the vital role pubs and brewing play in supporting over 900,000 jobs in communities across the UK and contributing £26 billion to the UK economy across towns, villages and cities. It made the case that if the Government is serious about Building Back Better and Levelling up, it must invest in pubs and brewers who have a leading role to play in the recovery as they come through the pandemic and continue their world-leading status. To achieve this, the BBPA underlined in the meeting the importance of co-investment from Government in the sector in the form of a fairer tax burden and more level playing field with other European nations post-Brexit. It made the case for its three key Budget asks: cutting beer duty overall, extending business rates relief and permanently lowering VAT for all food and drink sold in pubs. In concluding the meeting, it emphasised with HM Treasury officials that investment from the Government will enable the beer and pub sector to drive a jobs-rich recovery, whilst ensuring a pint in a pub remains an affordable pleasure.   Emma McClarkin, Chief Executive of the British Beer & Pub Association, said: “As we count down the days to the Budget, it was very productive holding a meeting with HM Treasury to further make the case for investment in our sector in the form of fairer taxation. “Investing in our brewers and pubs is investing in our communities and society to build back better. In return we will create jobs, boost the local economy and help our communities reconnect and unite again. “If the Government is serious about levelling up, it must get serious about reducing the tax burdens on our sector.”

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