Gov ‘needs to invest in sector or lose pubs forever’

The British Beer & Pub Association (BBPA) called on the Chancellor ahead of the Spring Budget, which traditionally takes place in March.

In its submission, the trade body urged the Government to ensure a fair, modernised tax system alongside a focus on skills and training to ensure the sector can thrive in every part of the country.

The BBPA outlined a number of measures the Government should take to help the industry going forward.

This includes long-term changes to beer duty rates including no rise in the headline rate of the tax this year, in a bid to reduce the damaging impact of inflation.

Extreme position

This was coupled with a significant increase in the discount for draught beer in pubs and the implementation of the previously announced reduced rate for lower-strength beers from 1 August 2023 to support public health objectives.

Furthermore, the BBPA also asked the Chancellor for a reformed business rates system as well as the implementation of training, development and in-work incentives to contribute to resolving the industry’s recruitment crisis.

The measures above follow the Government’s announcement that it would be slashing its energy relief for businesses from 1 April, which the trade body said puts pubs and breweries into a vulnerable position with many firms anticipating an 82% hike in bills.

BBPA chief executive Emma McClarkin said: “Our country’s pubs and brewers find themselves in an extreme position – they have been operating under extraordinary conditions for close to three years now and many are running out of road.

“Our pubs and breweries need a break. We need fair and modern tax rates to enable growth rather than putting them at a disadvantage to digital businesses and skills and development incentives that work for real people and innovative businesses."

Investment in people and places

She added: “Given the chance, our pubs and brewers can continue to support jobs and communities up and down the country by investing in people and places.

“The Spring Budget is an opportunity for this Government to show it understands just how much pubs and breweries mean to communities in every single part of the UK.

“It is an opportunity for the Chancellor to invest in a sector that brings so much to so many and help reduce pressures piled on by inflation.

Earlier this month, the BBPA called on chairs of the Treasury and Business Select committees to conduct an urgent inquiry into reports of poor conduct from energy suppliers​.