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 more27 March 2018
Responding to the Migration Advisory Committee interim report on EEA workers in the UK labour market, Brigid Simmonds, Chief Executive of the British Beer and Pub Association, today commented: “The Migration Advisory Committee’s interim report highlights the importance of migrant workers in the hospitality sector. A survey of BBPA members showed that brewing and pubs employ 17% of their workforce from overseas, but this rises to 40% in metropolitan areas and in some specialist areas such as kitchen staff, up to 80%. The interim report acknowledges that low unemployment does make it harder for businesses to recruit and retain workers and without doubt that is true for pubs in particular. “We acknowledge that many in entry-level positions in our sector are paid the National Living Wage, but we do not see ourselves purely as a low pay sector. We employ huge numbers of young people - 46% of employees in pubs are under the age of 25. We are working hard as a sector to ensure that working in hospitality is seen as a career and continue to work with the Government to support proposals for a Tourism Sector Industrial Strategy which has a clear focus on skills. “We are clear that any future immigration system must support the necessary levels of staffing in our sector. It has been good to see the Republic of Ireland changing their migration rules around the employment of chefs. There is a shortage of chefs here too and the experience required, rather than specific qualifications requirements does not fit well under Tier 2 of the current migration system. As the leading voice for brewing and pubs we will continue to work closely with the Home Office on a post-Brexit migration system that best serves our sector and have made clear that the tier system needs reform. Additionally, we would like to see the Youth Mobility Scheme, which gives the freedom for young people to live and work in the UK for up to two years, extended to EU nationals.”
23 March 2018
As English Tourism Week draws to a close BBPA Chief Executive visited one of Britain’s many great pubs in the constituency of the Secretary of State for Digital, Culture, Media and Sport Matt Hancock MP. For tourists, Britain’s pubs are a beacon. They offer something uniquely British and are often identified as a major attraction for a British holiday. Inbound tourists highlight a visit to the pub as one of the top three activities and in total some 13 million tourists from overseas visit the pub every year. Britain’s pubs and the country’s proud brewing heritage remain key cornerstones of national life. Intrinsically linked to national identity, the cultural significance of Britain’s pubs is highly significant, and the nation’s beers are known across the world. Taking place in spring each year, English Tourism Week campaigns to raise the profile of the industry and celebrate the value and quality of tourism in England. On Monday the BBPA participated in the English Tourism Week annual conference where the key issues facing tourism and hospitality businesses were debated. Brigid Simmonds, Chief Executive of the British Beer and Pub Association, comments: “I was delighted to visit the wonderful Packhorse Inn in Moulton with the Secretary of State whose support for our sector is vital and appreciated. It is a great example of how pubs are a destination for not just delicious beer but also fabulous food. “English Tourism Week has once again been brilliant at highlighting the many wonderful visitor attractions up and down the country. Pubs remain a huge draw for tourists, both international and domestic and bring enormous economic benefits to local areas and of course to the nation as a whole.” Matt Hancock, MP for West Suffolk and Secretary of State for Digital, Culture, Media and Sport added: “There is nothing more iconic than a British pub, and it is easy to understand why a visit to a pub is at the top of most tourists’ lists of things to do when they visit the UK. The Packhorse Inn in Moulton is a particularly wonderful pub – beautiful, with a welcoming atmosphere and exceptional food and drink. In West Suffolk, we are fortunate to have so many fantastic pubs. Pubs and our long brewing tradition are at the heart of our cultural heritage. “I am delighted to celebrate English Tourism Week here in Moulton. Tourism is one of the biggest industries in our country – we are rightly proud of what we can offer both local and international visitors alike when they come for a holiday.”
16 March 2018
The BBPA has welcomed the Department of Health’s consultation published yesterday, on low alcohol descriptors in the marketing or labelling of alcoholic drinks. This should provide an opportunity to change the rules to help grow the lower strength market and clarify labelling for consumers. The intention of the Department of Health to use guidance on this issue, rather than the heavy hand of legislation is very welcome. The BBPA has for some time been calling for more flexibility to promote lower strength or ‘lighter’ beers at or below 3.5% ABV. This should extend to labelling descriptors and advertising which will help consumers make informed choices. Current advertising regulations prevent brand owners from promoting lower strength beers as such. The BBPA has consistently supported initiatives that promote lower alcohol options and BBPA members have long supported responsible drinking initiatives. Brigid Simmonds, Chief Executive of the British Beer and Pub Association, comments: “The consultation acknowledges that the sale of lower strength products, as an option for consumers, helps encourage responsible drinking. “BBPA members have responded to consumer demand for a greater range and choice of lower-strength beers, many with new flavours and ingredients. Investment in no and low alcohol beers has drastically increased in recent years. “Pubs are increasingly providing a growing selection of lower strength alcoholic drinks. Greater clarity in advertising and marketing will allow the lower strength market continue to grow while supporting pubs at the same time.”
15 March 2018
Today, the BBPA has published guidance for pubs on alternatives to plastic straws. The guidance outlines the various recyclable, reusable and biodegradable options, including wheat, paper and glass straws. The guidance also provides information on food safety and food hygiene compliance. The BBPA and its members are fully committed to reducing the use of plastic and plastic waste. The guidance published today urges members to stop issuing plastic straws and consider environmentally-friendly alternatives instead. The BBPA are also working with the British Institute of Innkeeping and others to look at bio-degradable alternatives and the composting and recycling capacity for such products. In the Spring Statement this week the Chancellor launched a consultation on reducing single-use plastic across the whole supply chain. The BBPA will be responding to the consultation to highlight the role brewing and pubs can play in this. Last week the Chief Executive of the British Beer and Pub Association, Brigid Simmonds met with Thérèse Coffey MP, Parliamentary Under Secretary of State for the Environment, to discuss reducing the use of plastic straws in pubs across the UK. Brigid Simmonds, Chief Executive of the British Beer and Pub Association, comments: “Pubs are already working hard to reduce the amount of single-use plastics being used. This includes only giving straws to those who ask. One of the easiest ways pubs can continue to reduce plastic waste is by using environmentally-friendly alternatives to straws and the guidance we have published today will help pubs and all licensees in cutting back on their use of plastics.”
09 March 2018
A coalition of industry and consumer bodies, including UKHospitality, the British Beer and Pub Association (BBPA), Campaign for Real Ale (CAMRA) and the Society of Independent Brewers (SIBA), has written to the Chancellor of the Exchequer ahead of the Spring Statement. The joint letter urges the Chancellor to provide decisive action on three key issues for the sector: business rates reform, hospitality VAT and post-Brexit duty. The letter calls on the Government to undertake a comprehensive review of business rates, undertake a consultation on a possible reduced rate of VAT for hospitality and engage with the sector to overhaul the excise duty system to promote the consumption of lower-strength drinks in licensed premises. UKHospitality Chief Executive Kate Nicholls said: “With cost pressures continuing to squeeze many businesses and with the UK’s withdrawal from the EU fast-approaching, the time is right for the Government to provide decisive support for hospitality businesses. “The Government has indicated that it will provide the support we want, and that it will undertake a review on business rates, but pubs and restaurants are still overpaying £1 billion in year in rates. We want to see the Government push ahead with its promised review and begin to fashion a regulatory system that supports hospitality businesses and supports growth. “With Brexit on the horizon, the Government has an opportunity to address sector concerns around VAT and instigate a duty regime that promotes hospitality businesses as well as addressing any concerns it may have regarding unsupervised consumption of higher-strength drinks. “We hope the Chancellor accepts our offer to engage with the sector and provide pubs and hospitality businesses with the support they need to grow.” Brigid Simmonds, Chief Executive of the British Beer & Pub Association, said: “I hope the Government will consider this united call for a review of actions to help our sector. The business rates burden on pubs is particularly acute, paying 2.8% of all business rates while accounting for less than 1% of rateable turnover. “British beer is also over-taxed, and while the duty freeze in the Autumn Budget was welcome there is still work to be done to protect a great British manufacturing industry. Of every £1 spent in a pub 34p goes to the taxman. We must take action to reduce the cumulative impact on our pubs which are so vital to their local communities.” CAMRA National Chairman Colin Valentine said: "CAMRA believes that while temporary business rate relief for English pubs has been welcome, a complete overhaul of the system is needed to fix the root issue. As we leave the European Union, we are urging the government to look at how taxation on beer and pubs can be changed to benefit both publicans and beer drinkers. “Pubs need a fair deal on tax to ensure that they remain competitive with off-trade outlets like supermarkets, which are better placed to absorb the high cost of taxation. We need to act now to help keep the lid on price increases so that more people can afford to visit their local and enjoy all of the personal, social and community-wide benefits of pub-going." Mike Benner, Chief Executive Society of Independent Brewers (SIBA) said: “Nearly every Member of Parliament has at least one independent craft brewer in their patch creating jobs, investment and above all, great beer. Brewers rely on pubs, restaurants and the hospitality sector for a significant part of their business. That’s why we need the promised business rates reform from the Conservative Manifesto, action on hospitality VAT and long term thinking about what the duty system might look like post-Brexit. Every MP in the land should be pressing the Chancellor and HM Treasury to take the opportunity to work with us to get this right”.
09 March 2018
The British Beer & Pub Association (BBPA) has responded to the Business, Energy & Industrial Strategy (BEIS) Committee’s Inquiry into small business and productivity. In the submission the BBPA highlight that over 80% of pubs are classified as small businesses and called on the Government to provide more support. As the leading voice for pubs and breweries the BBPA emphasised the importance of skills and access to labour for the sector. As such the response highlighted the BBPA’s recent submissions on T-Levels and occupational maps. T-Levels seek to provide a practically based, enhanced, technically skilled pathway, rather than the more academic A-Levels. Occupational maps, which aim to simplify the current apprenticeship system by categorising occupations with similar knowledge, skills and behaviours (KSBs) into 15 maps, will play an important role in developing future apprenticeship programmes for those seeking a career in our sector as well as T-Level qualifications and more needs to be done in this area. The BBPA also called for fair treatment of access to finance, which would provide more opportunities for pubs to access investment. Furthermore, the BBPA’s submission suggested the Government should build on the work carried out by McKinsey and subsequently KPMG to increase productivity in the pub sector. Removing barriers is key in supporting small businesses. For pubs, the disproportionate business rates burden is a continued barrier to growth and investment, and the response highlights the real need for business rates reform as well as urgent reform of the Small Brewer Relief Scheme to support growth. BBPA Chief Executive Brigid Simmonds comments: “The small business is the engine of the UK economy and pubs are a vital part of so many communities up and down the country. Many pubs are struggling under the burden of taxation, from business rates to beer duty, and it is important that the Government looks at ways in which it can best support our vital sector.”