Is new PM Theresa May good or bad for pubs?

By Oli Gross

- Last updated on GMT

Is new PM Theresa May good or bad for pubs?

Related tags Minimum wage Theresa may

Incoming prime minister Theresa May has been heavily involved in alcohol-related issues during her time as home secretary, and the industry is digesting if her appointment will be a good thing for pubs.

In 2012 May introduces late-night levies and Early Morning Restriction Orders (EMAROs), and proposed a minimum unit price for alcohol, which she then led a revolt against.

These policies were supposedly about rebalancing the Licensing Act in favour of local communities, but director of CPL Training Paul chase argued EMAROs were a ‘complete failure’.

“Not one has been introduced - and the Late Night Levy has only been taken up by a few local authorities, but remains a threat,” Chase told the PMA.

“As for minimum pricing, the UK government put that on the back burner, whilst the Scottish Government and the Scotch Whisky Association continue to slug it out in court.”

Chase argued the most important development will be who is appointed as home secretary as part of May’s cabinet.

He continued: “My guess is that putting in place some kind of immigration control strategy, as part of negotiating our exit from the EU, is going to be the Home Office’s top priority; hopefully meddling even more with alcohol and licensing will fall down the agenda.”

Close relationship with industry

A spokesman for the Association of Licensed Multiple Retailers admitted that measures introduced by May have been ‘unhelpful’ for the sector, but her close relationship with the sector sparked a reversal of a number of key measures from the previous administration.

The introduction of public health as a licensing objective was resisted despite intense and continuing pressure from health lobbyists.

And May recognised that “the only cause of crime is criminal” and that businesses selling alcohol are victims of alcohol-related crime and not party to it, the spokesman explained.

Targeted harmful drinkers

May was reportedly always clear that her action was “targeted explicitly at those harmful drinkers, problem pubs and irresponsible shops. It is not about stopping sensible, responsible drinking or penalising responsible shops, pubs and off-licences”.

“Though we did not always agree on her methods, her tenure at the Home Office has seen a marked and necessary shift in government towards this more nuanced and adult perspective on our vital industry,” the spokesman added.

Chief executive of the ALMR Kate Nicholls called on May to guarantee non-UK EU nationals will be granted the right to remain and work in the UK.

Economic stability

She said: “With Theresa May now confirmed as the next UK prime minister, the Government must act decisively to secure our long-term economic stability, business and consumer confidence. The reaction of the markets today (July 11) shows how valuable certainty and stability is for investors and the same is true for business, particularly in hospitality which is a key engine of economic growth and employment. We now need a clear road map to lock in competitiveness and allow companies to reliably plan ahead for the future – particularly around recruitment.

“The new Prime Minister will set the tone for the UK’s approach to the EU negotiations and we are pleased that she has sent a clear signal that nothing will be rushed and no steps will be taken until we know what is needed from them. She must ensure that the needs of sectors like hospitality and small businesses are taken into account – simple access to the single market, the ability to hire the right people and driving down the costs and burdens of regulation.

“Above all else, we call on Theresa May as one of her first acts as the new Prime Minister, to  guarantee non-UK EU nationals, many thousands of whom work in our pubs, bars, hotels and restaurants, to be granted the right to remain in the UK both before, during and after the negotiations. We need a clear Brexit employment strategy.”

Brexit uncertainty

Brigid Simmonds, chief executive of the British Beer & Pub Association, added: “It is good to see that the process to find a new Prime Minister has been completed quickly, and this will help ease some uncertainty amongst business.  We look forward to working with Theresa May and her new Government. 

“The forthcoming Brexit negotiations still present considerable concerns, to both business and consumer confidence.

“It is vital that, in the short term, Government looks at some of the regulatory costs already in the pipeline; from the National Minimum Wage and Living Wage, through to business rates revaluation, the Apprenticeship Levy and auto-enrolment of pensions for Small and Medium-sized Enterprises.

“In the longer term, balancing free movement and free trade is not going to be easy, and we need to ensure that the competitive position of beer and pubs in Britain is protected throughout negotiations.

“The BBPA will be liaising with new members of the Cabinet in the coming weeks to set out our position, and to ensure they are aware of the vital role our industry plays in the British economy.”

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