Trade body SIBA, which is the voice of independent breweries across the UK, has written an open letter to Chancellor Rachel Reeves, scolding her over the promise of increased support on business rates for the hospitality sector but has worked out “pubs will now typically pay 76% more in business rates while online tech giants only pay 16% more”.
The letter also stated: “We would urge you to work in partnership with the devolved nations to look at what further immediate support can be provided to help the industry. Measures could include widening the business rates discount for pubs from 5p to 20p and delaying the revaluations.
Optimistic of pledges
“As a sector, we were optimistic of your pledges to reform business rates to help address the iniquitous tax imbalance between traditional business and online tech giants. As a percentage of turnover, we pay tax at four times that of those global businesses, which has always struck us as deeply unfair.”
SIBA has told the Government pub closures are at a new high and more than 100 breweries have been lost in the past year meaning the hospitality sector is “in a fragile state”.
It added the changes made to business rates leaves many in the sector walking a knife’s edge between closure and survival in an industry that is “the beating heart” of communities across the UK.
The open letter has been signed unanimously by all 28 SIBA regional directors from across the UK, as well as all four SIBA non-executive directors, in what SIBA said is a clear show of solidarity from independent brewers facing a crisis of survival for the pubs and hospitality sector.
The full letter reads:
“Dear Chancellor,
“As members of the board of the Society of Independent Brewers & Associates (SIBA), we represent around 700 independent breweries, operating at the heart of our communities across the UK. We are an integral part of the UK’s brewing and pub sector that as a whole supports 1m jobs and pays £18bn in taxes.
“We take this unprecedented step of jointly writing to you to express our deep concern at the impact of last week’s business rates decisions on the hospitality sector. We would urge you to work in partnership with the devolved nations to look at what further immediate support can be provided to help the industry. Measures could include widening the business rates discount for pubs from 5p to 20p and delaying the revaluations.
“As a sector, we were optimistic of your pledges to reform business rates to help address the iniquitous tax imbalance between traditional business and online tech giants. As a percentage of turnover, we pay tax at four times that of those global businesses which has always struck us as deeply unfair.
“While we were disappointed that you didn’t take the opportunity in your Budget to lower duty on draught beer sold in pubs, the sector was initially heartened by your announcement of increased support on business rates and to make the hospitality relief permanent.
“However, once the revaluations are taken into account and the transitional relief unwinds, pubs will now typically pay 76% more in business rates while online tech giants only pay 16% more. The imbalance is widening still further. The promises made seem to be at odds with the reality that community pubs now face.
“With pub closures at a new high and having lost more than 100 breweries in the past year, the hospitality sector is in a fragile state. These changes to business rates could be the difference between closure and survival for businesses that operate as the beating heart of communities and bring people together when society needs it most.
“We would be happy to host you at one of our independent breweries to discuss this further and explore options to maintain our brewing and pub sector.”
