Governments take what the hospitality industry does for the economy and communities for granted, an industry leader told MPs this week.
Speaking at the All Party Parliamentary Beer Group’s Christmas reception, Nick Mackenzie, ceo of Greene King said while the industry needed to maintain communication with Government, he had an obligation to share some home truths.
“Government, both past and present, I’m afraid to say, are taking what our industry does for the economy, for jobs and for communities, for granted.”
He highlighted the value of the sector which provides one million jobs, contributes £34bn to the economy and generates £18bn in taxes.
“We have heard great intent and we’ve even heard manifesto promises. We’ve seen some good longer term initiatives, but we are being continually bombarded with what I think is well-intentioned policy that is creating an unsustainable avalanche of costs on the sector.
“The impact of simultaneously combining increases to all the cost lines, literally add up to hundreds of millions of pounds in extra costs that are hitting us year after year, it is simply unsustainable.
“For many, it is no exaggeration to say, it is a fight for survival. A fight for their business, their jobs and their employees jobs, their homes and the community hubs that we provide.”
He said that assurances given had not been delivered: “We were promised and led to believe that the playing field compared with online businesses would be levelled, with business rates reformed for our sector to help deal with the cost impact that disproportionately impacts our pubs.
“So here is my home truth. I want to tell the government, you’ve got the business rate changes wrong, and something needs to be done. Not in the next few years, but now before the damage is too great to recover.
“This was a moment for real change, by reducing the multiplier for clubs by 20p, and it was not taken. There are a myriad of examples that everyone in this room’s got of eye watering rates increases, despite transitional relief. But without a genuinely fair business rate system, pubs will continue to shoulder a disproportionate burden
“So my ask to the Treasury, the Department of Business and Trade and across all of Government, is - if you truly value our pubs and breweries, now is the time to listen to us, now is the time to act and now is the time to stop what’s happening with business rates before it’s too late.”
He said there had never been a more important time for pubs: “In a time when we’ve seen many examples of communities drifting apart, the pub is that safe place. A safe space that can knit a community together. And it is really a sad irony that when we need them more than ever their fight for existence has never been harder.”