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 more11 June 2018
The British Beer and Pub Association (BBPA) has predicted that England fans will drink 14 million extra pints at the pub during the World Cup group stages, as they cheer on the England squad in their games against Tunisia, Panama and Belgium. The extra number of pints drunk during the World Cup group stages could provide as much as a £42 million boost to the economy, with the Great British pub being one of the main benefactors of a surge in demand for beer as fans cheer on the England team at their local. The taxman will be cheering the loudest as England progress through the group stages of the competition. With beer duty, the extra tax put on beer in addition to VAT, meaning that HMRC could get an additional windfall as high as £6.3 million from beer drinkers and pub-goers watching England at the World Cup. With the friendly timings of England’s group stage fixtures meaning that the Three Lions will play Tunisia and Belgium in the evenings after work and Panama at the weekend, as well as fewer fans travelling to the tournament itself to catch the games, the Great British pub is set to be the place to watch England’s World Cup matches this summer. BBPA Chief Executive Brigid Simmonds comments: “When it comes to watching England at the World Cup, only being at the game itself can compare with being in the pub. Millions of England fans will be going to the pub to cheer on the team with their friends, which is both great for the local pub and great for the England team. Let’s hope the England team do us proud!”
05 June 2018
The British Beer and Pub Association (BBPA) has today responded to the Treasury’s consultation on cash and digital payments in the new economy. Whilst the BBPA has acknowledged the growing trend towards digital payments in its response, it has cautioned the Government’s involvement in the payments market as unintended consequences for cash-based businesses are still being felt. As an example of this, the BBPA has highlighted the recent implementation of the EU Payment Services Directive, which only recently came into force in January 2018. Since its implementation, the Directive has meant that many pubs now require a minimum spend to help offset the cost of providing digital payment services to their customers, without directly passing the cost on to them through higher prices. The BBPA has noted that this disproportionately effects the local pub that wants to offer convenient services to attract customers, without having to raise prices and risk losing business. The cost of offering a digital payment service can be as much as 20p per use to the publican and as the average cost of a pint in the UK is £3.39 for beer and £3.05 for cask ale (or 5.9% and 6.6%, respectively, of a pint), many pubs must set a minimum spend on digital payments to ensure they don’t cut too deep into their already squeezed margins. Finally, the BBPA has reminded the Treasury in its response to the consultation that cash-based entertainment options ranging from betting machines to snooker tables form an important part of a pub’s offer. Should the Government continue to legislate around digital payments, the BBPA would encourage them to look at accepting digital payments for entertainment options like these. Keeping two distinct systems is costly and punitive to business and discriminatory to customers. BBPA Chief Executive Brigid Simmonds comments: “A shift towards digital payments across the world of commerce is clearly taking place. Whilst this can be good for busy pubs where payments at the bar are much faster for customers, Government intervention towards such innovation needs to be well thought through. If not, cash-based businesses such as pubs could be unfairly burdened. In due course, it would be good to see an increase in the maximum limit for contactless payments from £30 to £50.”
01 June 2018
The British Beer and Pub Association (BBPA) has today responded to the Government’s Employment Status consultation on how to make rules for employment rights and tax clearer for individuals and businesses, as proposed by the Taylor Review on Modern Work Practices. In its response to the consultation, the BBPA has expressed concerns over the breadth of proposals in the Taylor Review, advising that an improvement to the current structures in place to resolve disputes would be more suitable for addressing concerns around workers’ rights than legislation. In particular, the BBPA has identified codifying employment status through legislation as too prescriptive, which would remove judges’ ability to adapt on a case by case basis. Likewise, the BBPA has also indicated that codifying employment status through legislation could create unnecessary uncertainty and costs for the industry, which continues to be burdened by excessively high beer duty and business rates. To overcome these issues, the BBPA has suggested that the proposals outlined by the CBI for a ‘Fast Track’ scheme on ruling the status of employment would be best. This would enable those who wish to get a ruling on the status of their employment to do so quickly, without significant disruption to the current structures used to resolve employment disputes. BBPA Chief Executive Brigid Simmonds comments: “As an industry that supports 900,000 jobs and a range of employment opportunities across the whole of the UK, brewers and pubs are key job creators for the nation. “Although clarity is still needed from the Government on employment status, we prefer to build upon the strengths of the tribunal system. A ‘Fast Track’ scheme for ruling employment status would be best, meaning minimum disruption to the current structures in place to resolve disputes.”
01 June 2018
The British Beer and Pub Association (BBPA) has today responded to the Low Pay Commission’s annual consultation on the effects of increases to the National Living Wage and National Minimum Wage. Whilst the BBPA has expressed in its response support in principle for linear increases to the National Living Wage (so it continues to rise at a pre-defined level), the BBPA has urged the Low Pay Commission to take caution in increasing all statutory wage rates in April 2019, due to uncertainty the industry faces from Brexit and weak consumer confidence. The BBPA has also highlighted the challenge of maintaining differentials in the pub sector, whereby an increasing National Minimum Wage puts upward pressure on wage rates generally. Wages can contribute up to 30% of a pubs cost and each increase of 1% to the National Living Wage adds £12 million to the sector’s wage bill, which would be more beneficial to the industry if it could be re-invested to encourage growth. In the consultation response, the BBPA has also expressed concern over future immigration policy, with many pub companies relying on talent from the EU for their workforce. The BBPA has previously called for a review of the ‘Tier’ system and a greater understanding of the value of ‘soft skills’ and in this latest consultation response has highlighted the need for a review of the Apprenticeship Levy as well to ensure the sector retains a reliable source of talent. This is particularly important as there is a real need for the Government to give equal billing to non-graduate routes to employment. As part of this, the BBPA has called for an exception for pub companies who cannot currently use Apprenticeship Levy funding to support their leased and tenanted pubs, as they do not employ the staff directly. This year, the Low Pay Commission’s consultation contained extra questions regarding flexible working hours. The BBPA has highlighted the importance of flexible hours for the sector, where the peaks and troughs in demand throughout the year mean flexible hours are necessary and, in many instances, zero hours contracts or minimum guaranteed hours provide an important balance for both employers and employees who often have other priorities. There would be a real law of unintended consequences if different pay rates were required for employees on such contracts. BBPA Chief Executive Brigid Simmonds comments: “The British brewing and pub industry is an important job creator for the nation, supporting 900,000 careers and providing vital employment opportunities for as many as one in thirteen young adults. Many of these jobs are in pubs and there is little evidence to suggest that an increase to the National Living Wage improves retention or productivity in our sector, where the potential for increased productivity through automation is limited. “Whilst we support in principle linear increases to the National Living Wage and the Government’s desire to see increased wages across the economy, this needs to be balanced with the rising inflation that is driving up costs for businesses. It is vitally important to ensure that the industry doesn’t suffer from a significant increase in its wage bill that could hinder job creation and growth.”
30 May 2018
British beer sales in the first quarter of 2018 were 1.7% down on the same period in 2017, according to the latest Beer Barometer sales data from the British Beer & Pub Association. This compares with a 3.4% rise in Q1 of 2017 (the first time the industry had posted an increase in Q1 beer sales since 2004). The decrease in sales for Q1 2018 affected both the on-trade and off-trade. On-trade sales fell by 1.9% and off-trade sales fell by 1.5% compared to Q1 2017. Last year, the industry took a £130 million hit with the increase in duty at the March Budget. November’s duty freeze was a welcome move, but more still needs to be done by the Government to support beer and keep a pint in the Great British pub affordable for consumers. Speaking on the Q1 Beer Barometer, Brigid Simmonds OBE, BBPA Chief Executive, said: “Beer sales experienced another fall at the beginning of the year and the industry will be hoping for better prospects this summer, especially as the FIFA World Cup will be a big draw to the pub. What’s still needed is a continued focus from the Government to reduce the tax burden on beer and pubs to ensure their success in the future.” UK Quarterly Beer Barometer Q1 2018
30 May 2018
The British Beer and Pub Association (BBPA) has welcomed the proposal by the European Commission to extend the threshold for low alcohol beers that can benefit from reduced duty rates from 2.8% ABV to 3.5% ABV. The proposal comes after detailed work from the BBPAand support from the British Government. With evidence from Drinkaware suggesting that a significant proportion of consumers seek out lower strength options as a way of moderating their alcohol consumption, the extension of the threshold would help grow the lower strength market, creating an incentive for significant investment and innovation in the category. The European Commission currently defines low strength beer for tax purposes as below 2.8% ABV. As a result, the Government introduced a lower tax on 2.8% ABV or less beers in 2011. The BBPA has long supported the extension of the low alcohol threshold and will push the European Parliament to adopt these latest proposals from the European Commission. BBPA Chief Executive Brigid Simmonds comments: “Whilst it is possible to produce some great beers at 2.8% ABV, there is much more potential to grow the market for lower strength beers if the threshold is increased to 3.5% ABV. Under the complications of the European Structures Directive, the UK system of taxing beer by ABV is a real disadvantage for producers and reduces consumer choice. “I very much welcome the proposed extension of the low alcohol threshold by the European Commission and will push for parliament to adopt it, which should boost investment and innovation in the industry for low and no alcohol beers that are a great way to enjoy sensible drinking whilst supporting your local pub.”