Tag: British Beer and Pub Association

Beer and Pubs pour millions into Scotland’s economy but government support urgently needed, says BBPA

  • Scotland’s beer and pub sector contributed more than £2.3 billion in GVA and generated more than £1.4 billion in tax, new British Beer and Pub Association research reveals   
  • Despite huge contribution to country’s finances and communities, taxes and rising business costs mean pubs make just 12p a pint    
  • Industry may have to bear yet more punishing burdens and restrictions  
  • BBPA calls on the Government to be “business friendly” and support Great British beer and pubs to boost economic growth   

Scotland’s beer and pub sector poured more than £2.3 billion in Gross Value Added (GVA) into the economy and contributed more than £1.4 billion in tax in just one year, according to new research by the trade body.   

As a whole, Britain’s beer and pub sector poured more than £34.3 billion in Gross Value Added (GVA) into the economy and contributed more than £17.4 billion in tax in just one year, according to new research by the trade body.   

Latest figures from 2024 Oxford Economics research show GVA contributions were up from the previous contribution of £1.7 billion. 

 These figures demonstrate the sector’s important economic contribution to both their region and the wider national economy, the British Beer and Pub Association (BBPA) said.    

But despite this, pubs make an average of just 12p on every pint of beer once taxes and costs have been deducted.     

Not only that, but the industry is also facing multiple burdens and restrictions in the form of proposed eyewatering packaging costs and a potential beer garden smoking ban.   

Now the BBPA is calling for a reduction in soaring costs of doing business. It warns the industry needs government support from the Budget to make sure the sector can continue to contribute to the economy and boost the country’s finances.   

The BBPA wants to see a cut in beer duty, business rates reform, and a pledge to keep the 75% business rates relief to ensure that pubs can survive.   

Emma McClarkin, CEO of the BBPA, said: “The Scotland’s sector’s growth will underpin economic growth, which is why if the Government truly is business-friendly, it must recognise that pubs and brewers are shouldering multiple taxes and costs that are squashing growth and could lead to businesses failing.    

“There is no more meat on the bone to cut, which is why it we are calling on the Government reduces the cost of doing business so we can continue to make a massive contribution to the public purse.   

“It is imperative there is a reform in the business rates system which currently penalises bricks and mortar businesses like pubs which pay five times more than their share of turnover.   

“Until then, the vital 75% business rates relief due must be maintained for pubs so that one of the core cost components of doing business can be controlled. In addition, we urgently need to see a cut in beer duty.    

“Our industry is an economic bellwether and when pubs and brewers suffer, the economy suffers. If the Government wants to succeed in its growth mission, it needs to support our beer and pubs which play such a vital role in our communities.”  

The sector is also facing potential eyewatering EPR recycling costs next year – set to be among the highest in Europe – plus increases in energy prices. The trade body has warned that this could lead some brewers to make heartbreaking decisions about whether they can keep making their beer.       

Not only that, but a proposed smoking ban in beer gardens would have a devastating impact on many pubs and affect their viability as businesses. The BBPA is urging Government to reconsider this misguided restriction.  

The industry is one for the most heavily taxed business sectors per pound of turnover in the UK with tax making up 40% of UK brewing turnover and £1 in every £3 spent in pubs.   

Use the power of the pub to level up, report urges

Failure to support the nation’s pubs return from lockdown risks imperilling the government’s levelling up agenda for economic and social renewal, the think-tank Localis has warned.

In a report entitled ‘The Power of Pubs – protecting social infrastructure and laying the groundwork for levelling up’ Localis argues it is vital that the lockdown roadmap is not allowed to slip back further for pubs, and that the commitment to end all trading restrictions by 21 June must be delivered to return all pubs to viable trading.

Without such assurances and medium-term support to help place the pub sector at the foundations of a strong recovery, the authors warned local economies and community resilience in left-behind parts of the country – including ‘blue wall’ former industrial heartlands, rural and coastal areas – would be particularly hit.

Among key recommendations, the report authors urged central government to further reduce the tax burden on the pub sector to aid the recovery and called for an extension to the Business and Planning Act 2020.

Local councils should be directed to help pubs by issuing licence fee refunds – paid for by the Treasury – for the six months to June 2021, through business support grants, the study advised.

Additionally, where premises have been put to new community purposes during the pandemic, councils should offer a diversification grant to pubs looking to retain or expand the services they provided during lockdown.

Localis chief executive, Jonathan Werran, said: “The case for treating Britain’s pubs with fair consideration in exiting lockdown measures is, at core, as simple as it is heartfelt. Where there’s a pub, there’s a community.

“As one of the biggest contributors to the UK economy, the sector has a vital role to play in the recovery and levelling up journey of the country as well as in maintaining community cohesion and social resilience well beyond the pandemic.”

Emma McClarkin, chief executive, British Beer and Pub Association, said: “The Pandemic has fractured our communities economic environment and frayed our social ties.

“The pub is a powerful embodiment and symbol of both, woven into the fabric of our society and it is one we need to support and strengthen as we rebuild our trade as well as reconnect our communities.”