The British Beer and Pub Association warns of a £310 million financial impact on UK pubs and breweries due to recent Budget changes.
- The BBPA highlights the risk of increased business rates and beer duty, which could affect a million jobs in the industry.
- Emma McClarkin, BBPA CEO, calls on the government to honour its promise to support the industry amidst mounting costs.
- Pubs, already operating with minimal profits, face substantial operational challenges.
- Urgent reforms in business rates and beer duty are proposed to alleviate industry pressure.
The British Beer and Pub Association (BBPA) has sounded the alarm over the potential financial repercussions for UK pubs and breweries following recent Budget announcements. The association projects a £310 million increase in costs, attributing this to raised business rates and beer duty. With one million people employed in the sector, the implications could be severe, threatening both jobs and growth opportunities.
Emma McClarkin, CEO of the BBPA, has articulated the urgency of the situation, noting that the government has limited time to fulfil its pre-election commitments to the pub industry. She pointed out that pubs often make as little as 12p profit per pint, highlighting the fragile state of the sector. McClarkin stressed the vital role pubs play in economically supporting their communities, stating, “Our industry pours billions into the economy, forms the backbone of the UK job market and is a cornerstone of the community.”
The BBPA has urged Chancellor Rachel Reeves to maintain business rates relief and consider a reduction in beer duty, countering the proposed inflation-linked increase. Such measures are deemed essential to supporting the sector’s stability and continued contribution to economic growth. Notably, the association referenced an annual investment of about £2 billion by the beer and pub sector, signaling the threat posed by increased taxation.
Projections indicate that a 5% reduction in beer duty could generate approximately 12,000 new jobs, primarily within the pub trade, showing the potential positive impact of government support. Emma McClarkin cautioned, “If the government doesn’t act then communities, jobs, and the economy will pay the price,” while also emphasizing the sector’s potential to boost economic growth and employment with proper government backing.
In response, a Treasury spokesperson acknowledged the importance of supporting businesses like pubs. The spokesperson reiterated the government’s pledges to reform the business rates system, limit corporation tax to 25%, and provide a corporate tax roadmap, which aims to offer businesses some certainty for future planning.
Without timely government intervention, the financial strain on UK pubs and breweries could jeopardize jobs and economic contributions.
