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 more24 October 2018
The BBPA has responded to the opening of a consultation by DEFRA, titled ‘Single use plastic: banning the distribution and/or sale of plastic straws, stirrers and plastic-stemmed cotton buds in England’ Commenting on the consultation, Brigid Simmonds, Chief Executive of British Beer & Pub Association, said: “As a sector that has shown leadership in tackling the issue of plastics, we welcome this consultation on plastic straws. The BBPA has given guidance to members on alternatives to plastic straws and supported an industry-wide campaign to cut the amount of single-use plastic being used in pubs, in partnership with the BII, UKHospitality and The Morning Advertiser. “Voluntary action to remove plastic straws and offer environmentally-friendly alternatives is preferable to legislation or new taxes, which we will make clear in our response to the consultation.”
24 October 2018
3,788 pubs could be at risk of closure, if the Chancellor does not extend the £1,000 sector relief rate for pubs, according to a new report commissioned by the British Beer & Pub Association (BBPA). Even if just one fifth of those pubs at risk were to close, it would equate to an additional 750 pubs closing on top of the current three pubs a day (upwards of 1,000 a year) that close their doors for good due to a range of cost pressures, including beer duty, business rates and VAT. The report, produced by leading economics consultancy Europe Economics, also found that over 20,000 full time jobs and almost 30,000 part time jobs employed by the pubs at risk of closure could be lost too. This means that If just one fifth of the pubs at risk were to close, 4,000 full time jobs and 6,000 part time jobs would be lost for good. Small community and rural pubs would be the most affected by a failure from the Chancellor to extend the rate relief for pubs. Almost three quarters (73%) of community pubs with turnover of around £4,000 per week and nearly one third (30%) of rural pubs with turnover of around £5,000 per week would be at most risk of closure as defined by Europe Economics. At a regional level, the South East would be the worst hit if the relief rate for pubs was not extended or made permanent, where pubs who would be at risk currently support 4,700 full time jobs and 5,700 part time jobs. London and the North East would be the least affected. The report includes a proposal to introduce a relief to pubs who offer community services. Community pubs are more at risk financially from a failure to extend the £1,000 sector relief rate and so additional relief or adjustment to business rates for pubs like these would help improve their viability. It would also recognise the valuable role that pubs play in boosting community cohesion. The report has also called for a delay in the revaluation of pub premises that have received investment to either two years or until the next revaluation period, whichever is longer. This would remove the disincentive to investment from business rate increases as soon as the project is completed. With the Budget just a week away on October 29th, the BBPA is calling on the Chancellor Phillip Hammond to support pubs by reducing their business rates burden. Doing so would be one way the Government can help back the beer and pub industry and support one of the nation’s greatest institutions, the pub. Brigid Simmonds, Chief Executive of British Beer & Pub Association, said: “The number of pubs in the UK is still falling; three close their doors for good each day. They are 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. “Pubs pay more than £500 million in business rates and 2.8% of the total bill, although they only equate to 0.5% of turnover. This important study highlights why we are calling on the Chancellor to extend the £1,000 rate relief for pubs beyond this year. This will save thousands of jobs and ensure that pubs across the UK can remain open, including community pubs and those in rural areas who would suffer most should their rate relief be axed. The report also confirms why delaying revaluation following a new Investment would also be a major boost.”
18 October 2018
Commenting on the consultation by the City of Edinburgh Council for a ‘Tourist Tax’, Brigid Simmonds OBE, CEO of the Scottish Beer & Pub Association, said: “A consultation by the City of Edinburgh Council for a ‘Tourist Tax’ is of real concern to the beer and pub sector. “In Scotland, our industry supports nearly 60,000 jobs and contributes £1.73bn to the economy – 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. “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 Edinburgh will see tourists having less money to spend in the city and only add to the challenges. 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. We also have some of the highest rates of air passenger duty in the world. “It is vital that any levy is hypothecated back into the sector to attract more visitors to the city and help those businesses which will be impacted by this tax. “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. Surely then we should be encouraging, rather than discouraging, tourists who visit and sometimes stay in one of Edinburgh’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 Edinburgh’s economy, a ‘Tourism Tax’ on one of Edinburgh’s most successful businesses could be bad news for the city.”
17 October 2018
Brigid Simmonds, Chief Executive of the British Beer & Pub Association, commented: “This research is right to raise concerns over the impact of global climate change on agriculture and farming. However, the longer term impacts for barley production are complex and harder to predict. "It is important to remember that the UK is a net exporter of barley, meaning we are less dependent on supply from other global producers. Likewise, the overwhelming majority of barley produced here in the UK is already produced for animal feed, not for brewing beer. “When it comes to the price of a pint however, the costs of brewing ingredients account for a relatively small percentage overall. Of far more immediate concern are taxation and business costs. We already pay some of the highest tax on beer in Europe and beer duty is set to increase in the Chancellor’s Budget by £107 million. This is far more likely to result in UK consumers paying more for their favourite alcoholic beverage!”
11 October 2018
St Austell Brewery, Joseph Holt, S.A. Brain, Molson Coors and Ian Payne MBE scooped up the honours at this year’s British Beer & Pub Association (BBPA) Annual Awards, presented at the BBPA’s Annual Dinner in London; a celebration of Britain’s beer and pub industry. The awards, which have been run by the BBPA for the last seven years, celebrate and showcase the very best achievements and innovations of the beer and pub industry. The winners triumphed in four categories; Pub Champion, sponsored by Diageo, Heart of the Community, sponsored by C&C Group, Beer Champion, sponsored by Heineken and the Chairman’s award. They were presented with their awards by BBPA Chairman and Chief Executive of Fuller, Smith & Turner, Simon Emeny. Pub Champion Award Winner: St Austell Brewery St Austell Brewery received the Pub Champion Award from Charles Ireland, General Manager - GB, Ireland and France, Diageo, for its ongoing investment in its award-winning estate of 178 pubs and hotels, many of which provide the last meeting space in their local communities due to the closure of other public facilities such as village shops and post offices. St Austell’s entry also highlighted its investment in the local community, particularly its strong links to local schools and colleges – including a Chefs Academy at Truro College – to inspire young talent to look at careers in the pub industry. Heart of the Community Award Winners: Joseph Holt and S.A. Brain The entries were so strong for this year’s Annual Awards that the judges had to pick two winners for the Heart of the Community Award! Joseph Holt received the award from presented by Guy Mason, Head of Public Affairs, Heineken for their unquestionable long-term commitment to charity. The brewer’s Edward Holt Trust has concentrated recently on providing local funds for the homeless, investing £1.9m to help six charity partners working with the homeless from 2014 to 2020. The brewer’s Peter Kershaw Trust has over the last two years provided nearly £400,000 of support for community projects – funding youth leaders working in the community and providing substantial support for Mood Swings, a local mental health charity. S.A. Brain also received the award for its partnership with Welsh charity Tenovus Cancer Care over a three-year period. The partnership saw S.A. Brain’s 2700 staff and customers in their managed pubs raise £150,000 for Tenovus Cancer Care, becoming the single biggest fundraiser of the charity. This has contributed to further research, treatment and support for those with cancer. Beer Champion Award Winner: Molson Coors Molson Coors took the Beer Champion Award, Clara Shand, Third Party Brand Director at C&C Group, for their aptly named Beer Champion training scheme. The scheme provides employees with three levels of in-depth beer tasting training. It also sees every new recruit who joins the organisation receive an immersive two-day induction on the basics of beer styles, brewing, tasting, and food matching. The Beer Champion training scheme is driven by Molson Coors’ Qualified Beer Sommeliers, who undergo an intensive programme of coursework and exams over three years. Molson Coors’ UK and Ireland business now has eight fully qualified Beer Sommeliers, and two more employees recently took their sommelier exams in September. Chairman’s Award Winner: Ian Payne MBE Ian Payne MBE won the Chairman’s Award. Ian was made a Member of the Order of the British Empire (MBE) after working in the hospitality sector for 46 years, starting behind the bar aged 19. He founded Stonegate in 2010, which now owns and manages 693 pubs, bars and clubs, making it one of the largest operators in the UK. Brigid Simmonds, Chief Executive of the British Beer & Pub Association, said: “Many congratulations to all of our winners and thank you to all those who entered as well. The BBPA Annual Awards serve to highlight the continued achievements of our industry and rewards the commitment to our sector and local communities and we look forward to more award-winning efforts in the future.” “I have known Ian Payne for the past 25 years, through Rank, Stakis and back to his much-loved pub trade. He thoroughly deserves the Chairman’s Award for the huge contribution he has made to the leisure sector. Visiting every one of his 333 pubs in 2011 is just one example of his dedication and he has always supported so many of the BBPA’s campaigns.”
08 October 2018
The British Beer & Pub Association (BBPA) has today commented on the findings of a study by the Local Government Unit and the Portman Group, which found that 92% of councils believe that the night time economy will play an important role in preventing the decline of the high street. With many retailers closing their stores for good, the night time offer of the high street – and in particular pubs – has become increasingly important for driving footfall to the high street. The BBPA knows that pubs, which are the beating heart of their local communities already, can play a key role in driving footfall to the high street. Commenting on the study, Brigid Simmonds, Chief Executive of the British Beer & Pub Association, said: “The high street is an important part of any town or city in the UK, but it is struggling. Our experience from previous years makes clear that local leadership, partnerships, events and an understanding of the local market really can make a difference to a high street. “We are therefore encouraged by the findings of this study by the Local Government Unit and the Portman Group. The findings suggest that the vast majority of councils see the night time economy as playing an important role in preventing the decline of our high streets. “Pubs are a huge part of the night time economy, creating jobs and driving growth on the high street. As an industry though they face many threats from beer duty to business rates. They need support from the very councils who say they value the role of the night time economy, as well as the Government. “We have previously welcomed changes to the National Planning Framework to incorporate the Agent of Change principle, which supports pre-existing venues like pubs and ensures that housing developers have to put in adequate soundproofing for new dwellings. Working together with local businesses will ensure that our night-time economy is safe, vibrant and attracts all generations to come together and enjoy their local towns and cities.”