Trade association presses for further support for brewing and pubs as they emerge from COVID-19 lockdown
The British Beer & Pub Association (BBPA) has today welcomed the Government’s continued commitment to Small Brewer Relief (SBR) and improvements to its current structure, as well as the launch of the Business Rates review and an expected timescale for the Alcohol Duty Review.
The trade association highlights that the purpose of SBR, which is now worth £75 million to small brewers, is to compensate for diseconomies of scale and it also ensures a huge choice of great beers for Britain’s beer drinkers. It hopes the measures announced today will build on the success of SBR, whilst supporting growth among brewers of all sizes by addressing the long standing distortions caused by the current structure.
It also said it also looked forward to responding to the Alcohol Duty Review announced by the Government today, highlighting the case for further support for brewing and pubs as they emerge from the COVID-19 lockdown.
Likewise, the trade association welcomed the announcement of a Business Rates Review today. Pubs pay 2.8% of the entire business rates bill, despite accounting for just 0.5% of business turnover and pay more rates as a percentage of sales than any other sector, meaning reform for business rates has long been needed to support Britain’s pubs. Clarity that the next revaluation will now take place in 2023 is also welcome.
As a world-renowned British industry supporting 900,000 jobs, contributing £23 billion to the economy and playing a key role in communities throughout the UK, the BBPA will continue to highlight the case for further support for brewers and pubs.
Commenting on changes to Small Brewer Relief, Emma McClarkin, Chief Executive of the British Beer & Pub Association, said:
“Following an extensive review, we welcome the Government’s continued commitment to our sector with the announcement today on Small Brewer’s Relief. Now worth £75 million per year to small brewers, the changes announced today aim to build on the success of the scheme. We hope the measures announced will support growth among brewers of all sizes. It is critical that brewers of all sizes now join forces to campaign for a significant reduction in the overall UK beer duty rate, which is hindering the recovery and future of our great industry.”
Commenting on the launch of an Alcohol Duty Review, Emma McClarkin, Chief Executive of the British Beer & Pub Association, said: “Confirmation that the wider Alcohol Duty Review is expected in September is welcome. The BBPA will be responding to the review to highlight the case for further support for brewing and pubs for what is a world-renowned British industry supporting 900,000 jobs, contributing £23 billion to the economy and playing a key role in communities throughout the UK.
“Now we have left the EU, we have the opportunity to level the playing field compared with other major beer producing countries. Especially as we pay 11 times more beer duty than Germany or Spain.”
Commenting on the launch of the Business Rates Review, Emma McClarkin, Chief Executive of the British Beer & Pub Association, said:
“We warmly welcome the announcement of a Business Rates Review. Pubs pay 2.8% of the entire business rates bill, despite accounting for just 0.5% of business turnover, so reform of the system has long been overdue. We will be responding to the review to highlight the case for a business rates system that cuts the tax burden for pubs as they recover from the COVID-19 lockdown.”
National Chairman of CAMRA Nik Antona said:
“This review into how alcohol can be taxed more fairly is a fantastic opportunity for the Government to save our pubs by introducing a lower rate of duty on draught beer, with savings passed on to pubs and consumers.
“A preferential rate of duty on draught beer is a radical proposal that will really help by supporting and encouraging drinking in the supervised setting of the local pub. This will also create and sustain jobs and level the playing field between pubs and cheap supermarket alcohol.
“We hope the Government will act to change the Business Rates system in England, which penalises pubs and fails to recognise their valuable role as community hubs which are vital in tackling loneliness and social isolation.
“The pub sector currently overpays in business rates by £500m a year, and rising rates are forcing hard-working publicans to push up prices for consumers or close their doors forever. The Government must make the Business Rates system fairer for pubs to ensure their continued survival.”