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Posted: Wed 18th Sep 2024
The British Beer and Pub Association (BBPA) has issued an urgent call for government support, warning that the beer and pub industry in Wales is under significant threat due to rising costs and tax burdens.
The sector, which supports 44,000 jobs across Wales, is seeking relief in the upcoming Budget to help safeguard employment and ensure the future of local pubs.
Despite the vital role pubs play in communities across the UK, the BBPA highlights that many businesses are struggling to survive.
On average, pubs earn just 12p for every pint sold after deducting taxes and other costs.
This narrow profit margin is putting immense pressure on the industry, which is grappling with high business costs and inflationary pressures.
BBPA CEO Emma McClarkin explained the widespread impact the pub sector has on the economy, from farmers to bartenders, emphasising that the industry is crucial for local jobs and communities.
“Our brewers and pubs are helping people around the country earn money, gain skills and experience, and support both the local and national economy,” she said.
She added, “For the job market to flourish – and for us to keep supporting those jobs – it’s vital our sector is given the support it needs to continue.”
The BBPA is urging the Government to take decisive action by cutting beer duty, reforming business rates, and maintaining the 75% business rates relief.
A 5% cut in beer duty, the association argues, could result in the creation of up to 12,000 new jobs across the UK, primarily in pubs, by making pints more affordable and boosting consumer demand.
The association also warns that without intervention, the pub industry faces potential devastation due to proposed new taxes, including packaging taxes and a possible ban on smoking in beer gardens.
Pubs and brewers are already among the most heavily taxed sectors in the UK, with £1 of every £3 spent in pubs going toward taxes.
“Any additional price increases, on top of the inflationary pressures of the last few years, would tip many beer and pub businesses over the edge,” the BBPA warned, adding that further closures and job losses are inevitable if costs continue to rise.
With the Budget approaching, the beer and pub sector is looking to the Government for urgent relief to ensure it can continue to play its vital role in both the economy and the heart of local communities.
As Ms McClarkin put it, “We are urging the Government to protect the Great British brewing and pub sector – the beating heart of our communities.”
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