Covid-19 / 15 March 2021
SBPA reveals devastation to pubs and brewers one year on from first COVID-19 lockdown, reiterates Government must ensure pubs can operate without restrictions as soon as possible One year on from the First Minister ordering the first COVID-19 lockdown, which forced pubs to close, the Scottish Beer & Pub Association has revealed the devastation the nations’ brewers and pubs have faced. The trade association has revealed that 200 pubs are estimated to have been lost forever, 210 million pints in beer sales lost due to a full year of either forced closure, or trading under severe restrictions, and £820 million in trade value wiped out from the sector in beer sales alone. Since the first lockdown in March 2020, pubs and other hospitality businesses have been amongst the hardest hit. They have also faced severe restrictions to their trade during other periods of being “open”, including level restrictions that ultimately forced many to stay shut or open but under conditions that made their trade unviable due to the closing times and other rules. Looking ahead to the First Minister’s expected announcement tomorrow, the SBPA has urged the Scottish Government to give the sector hope by aligning closely to the unlocking plans in England, which indicate that pubs will reopen outdoors from April 12th, followed by indoors from May 17th and with all restrictions lifted by June 21st. Emma McClarkin, Chief Executive of the Scottish Beer & Pub Association, said: “Our sector has been devastated by COVID-19 and the lockdowns. It has been a year to forget for the Scotland’s pubs and bars. “It is estimated that 200 pubs have been lost forever. 210 million pints in beer sales have also been missed, wiping out £820 million in trade value from the sector. “Sadly, we still haven’t seen the full extent of the damage yet and won't do for some time until things really do go back to normal. And by normal, I mean a return to what life was like pre-covid. “Whilst we continue to assess the full damage to our sector, I urge the First Minister to give our businesses the hope that they desperately need by providing a viable route out of lockdown tomorrow. The previously levels were entirely unviable for the majority of hospitality businesses, and they are desperately hoping for a more straight-forward approach to unlocking this time. “We also hope the Scottish Government will look at providing more support for our wet-led community pubs who, although grateful for all the support they received, will not benefit from the VAT cut to food in the same way restaurants will. Local wet-led pubs have been amongst the worst affected by the virus so it's important the Government goes that little bit further for them. “It is becoming all the clearer that the Government must ensure all our pubs are fully re-opened as early as safely possible. This is when their recovery will really start and until then we stand to lose more pubs and community assets.”
Read more03 February 2019
Commenting on the announcement in the Scottish Budget that the Scottish Government are to bring forward legislation for Transient Visitor Levies, Brigid Simmonds, CEO of the Scottish Beer & Pub Association, said: “This move by the Scottish Government for a ‘Tourist Tax’ is of real concern to the beer and pub sector. “In Scotland, our industry supports over 66,000 jobs and contributes £1.66bn to the economy annually – it is also a crucial part of the nation’s tourism offer, with a visit to a traditional pub ranking third on the list of things tourists do when they visit. Any impact on visitors will trickle down directly to our sector. “Pubs have faced a number of challenges over the last decade and still face increasing and considerable tax pressures from a range of sources; particularly high beer duty, unfair business rates and VAT. Any introduction of a ‘Tourism Tax’ in Scotland would discourage visitors, see tourists having less money to spend during their visit and only add to the current challenges and uncertainty. Any introduction must therefore be accompanied by a reduction in tax elsewhere. The UK ranks almost bottom on any list on price competitiveness for tourists and unlike most countries in the EU does not offer reduced VAT on either accommodation or food. “Scotland’s fantastic brewing industry has huge potential with some of the world’s great beers being produced right here. When tourists come to our pubs and sample our beer, they also go back home wanting to drink our beers which has helped grow our exports to record levels. Surely then we should be encouraging, rather than discouraging, tourists who visit and sometimes stay in one of Scotland’s many great pubs? “On average, every pub contributes £100,000 to their local economy each year, and with tourism being such an important backbone to Scotland’s economy, a ‘Tourism Tax’ on one of the country’s most successful businesses would be bad news. The tax contribution of the hospitality industry in Scotland is extremely high. Introducing a tourist tax will be very detrimental and a disincentive for visitors.”
31 January 2019
Responding to a call for evidence on airside licensing, Brigid Simmonds, Chief Executive of British Beer & Pub Association, said: “Many of us enjoy a drink at airports as a relaxing way to start a hard-earned break. Any measures taken to tackle the small minority of disruptive passengers must therefore be proportionate and not penalise the responsible majority. “Our members with airside pubs already sell alcohol in a responsible manner, reflecting the key aspects of the Licensing Act which they adhere to in all their other venues, even though they do not apply airside. Extending the Licensing Act to airside pubs would be bureaucratic and disproportionate. There are, however, other actions that can be taken, including extending the best practice of pubs to other outlets who serve alcohol in airports, but might not elsewhere. Looking at potential trigger points for disruptive passenger behaviour, like the sale of miniatures at duty-free check-outs and free alcohol in airline lounges, also needs to be considered. “Just as the BBPA has worked with the Home Office to create a better understanding of the law around serving customers, there is considerable potential for raising awareness of the law at airports. Operating voluntary codes of practice across all airside retailers and operators, thereby ensuring common standards and best practice, would also be effective. Training is also key, so that both retail and airline staff are able to recognise and deal with disruptive passengers, including stopping them from boarding an aircraft and ensuring the responsible sale of alcohol. Displays to educate passengers about the risks of drinking irresponsibly positioned in key locations across an airport would also be beneficial. “As demonstrated elsewhere in the sector, partnerships are key to tackling this issue. Best Bar None, which promotes the responsible operation of alcohol licensed premises, is already piloting a scheme with Manchester Airports Group that could be adapted by other airports if successful. The BBPA has also been working with a number of airports who are keen to learn from our experience in this area, working together to ensure that everyone sets off on their flights in a relaxed, but better informed way.”
31 January 2019
The British Beer & Pub Association (BBPA) has welcomed the implementation of the freeze on beer duty from today, which was announced by the Chancellor Phillip Hammond in the Autumn Budget on 29thOctober 2018. During a visit to a brewery in Liverpool today, the Chancellor praised the contributions made by the British beer and pub sector to the economy and communities. An increase in beer duty would have come into effect today had the Chancellor not chosen to freeze it for another year. The BBPA calculates the decision will save pubs and pub-goers £110 million, helping to secure upwards of 3,000 jobs that would have otherwise been lost. Brigid Simmonds, Chief Executive of British Beer & Pub Association, said: “Brewers and Pub-goers across the UK will be toasting the Chancellor today as beer duty is frozen for another year. This will save brewers, pubs and pub-goers £110 million and secure upwards of 3,000 jobs that would have been lost had beer duty gone up today. “Clearly, the Chancellor listened to the 116,000 people who signed the petition to cut beer tax in his last Budget. Pubs are so important to their local communities and 82% of the beer we drink here is brewed in the UK, so it is great to see the Chancellor supporting a great British industry. “Freezing beer duty is a big helping hand for pubs across the UK that are struggling. I hope we can build on this in the future and we will continue to celebrate the vital role that local pubs play in communities and highlight the ongoing pressures they face by supporting the Long Live the Local campaign. “The Chancellor’s decision to review Small Brewer Relief is also most welcome and now underway.”
31 January 2019
The British Beer & Pub Association (BBPA) has today welcomed the publication of the London Night Time Commission’s report, which has concluded that London’s night-time economy can play a major role in helping to save its struggling high streets. London’s night-time economy employs 1.6 million people and contributes billions to the economy. The Commission has made it clear in its report that even more can be done to build on this success, calling for activity between 6pm and 6am to be placed at the heart of London policymaking. This should include pubs, says the BBPA, which are already a successful and key part of London’s night time offer. Brigid Simmonds, Chief Executive of the British Beer & Pub Association, comments: “High streets in boroughs across the city are an important part of London’s economy, but many are struggling. We therefore welcome this report by the London Night Time Commission, which recognises the vital role the night-time economy can play in revitalising London’s high streets. “Pubs are a huge part of London’s night-time economy, creating jobs and driving growth on the high street. London has over 3,800 pubs that directly employ over 67,000 people, of which 34% are under the age of 25. This shows that pubs have a vital role to play in growing London’s night-time economy and boosting high streets across the city. As an industry though they face many threats from beer duty to business rates and need support from the very people who say they value the role of the night-time economy. “Key to growing the night-time economy in London is enforcing the Agent of Change principle. This supports pre-existing venues like pubs, ensuring that housing developers have to put in adequate soundproofing for new dwellings located nearby.”
23 January 2019
The British Beer & Pub Association (BBPA) has today welcomed the publication of the House of Lords’ Economic Affairs Committee report, titled ‘Measuring Inflation’. The BBPA contributed to an inquiry which informed the report, proposing that the Government should switch to CPI in all areas where RPI is currently used to apply inflationary increases. The report has included this proposal from the BBPA as one of its key recommendations to the Government. The Government currently has year on year RPI linked increases planned for beer duty, which means that it will likely increase by at least 3% every year for the foreseeable future. Beer duty has increased by more than 60% over the last 17 years and now the UK has one of the highest rates of duty in Europe, which is a key factor behind the closure of many of the UK’s pubs. The Government has already agreed to switch increases applied to Business Rates from RPI to CPI and has brought forward plans for the switch, which pubs have welcomed. Brigid Simmonds, Chief Executive of the British Beer & Pub Association, comments: “The number of pubs in the UK is falling, with pubs facing increasing and considerable tax pressures from a range of sources; particularly high beer duty, unfair business rates and VAT. This is deeply concerning because pubs are a great British institution and are often the social hub of their community. “Beer duty is particularly burdensome for pubs and the Government has year on year RPI linked increases planned for it, which will see beer duty increase by at least 3% every year for the foreseeable future. “Increasing beer duty has a real effect on footfall in pubs, so we welcome the recommendation of the House of Lords’ Economic Affair Committee report for the Government to switch from RPI to CPI. This will not stop us calling for beer duty to fall further given that we pay 40% of the total beer tax across Europe, but only consume 12% of the product, but it is a step in the right direction.”
21 January 2019
The British Beer & Pub Association (BBPA) has today welcomed the Prime Minister’s decision to scrap the settled status fee. The fee had meant that EU citizens would be charged £65 to claim settled status after the UK leaves the European Union, with an additional charge of £32.50 for any dependents. Analysis by the BBPA suggests that 71,000 EU nationals working in pubs will benefit from the settled status fee being scrapped, saving £4.6 million in total for those employed by the pub sector. The decision will also reduce unnecessary paperwork for publicans across the UK, the majority of which operate as small businesses. Some pub businesses had offered to pay the settled status fee for their EU staff, prior to the Prime Ministers decision to scrap it. Brigid Simmonds, Chief Executive of the British Beer & Pub Association, comments: “The Prime Minister’s decision to scrap the settled status fee for EU nationals is a big boost for Britain’s pubs and their workforce. As many as 71,000 EU nationals will benefit from the decision, saving around £4.6 million in total. “The vast majority of pubs operate as small businesses, so the scrapping of the settled status fee will be of huge relief to those publicans who faced unnecessary admin and knock on costs from it. “Brewers and pubs employ as much as 24% of their workforce from overseas, rising to 40% in metropolitan areas and in some roles, such as kitchen staff, up to 80%. Already, companies have seen the number of EU workers in our sector decline. As a result, many companies were prepared to pay the cost of settled status for their colleagues who had committed to staying. This is a good decision and supports vital employees in pubs and across the hospitality sector. “This decision shows that the Government has been listening to the concerns of the beer and pub sector as well as the wider business community.”