BBPA: recession has squeezed income for all

Income and debt levels have been squeezed by the recession for everyone — not just pub tenants — the British Beer and Pub Association (BBPA) has said.

The BBPA was reacting to GMB's recent survey showing almost a third (29%) of its pub tenant members had debts of over £50,000.

The survey of 3,000 tied tenant trade union members, released yesterday, forms part of the GMB's submission to the Office of Fair Trading investigation into the pubco model.

It claimed that 73% of pub tenants earned less than £10,000 a year after rent and costs (GMB: 73% of tied pubs earn less than £10k​).

However, the BBPA has hit back at the survey and raised questions over its "representativeness".

Director of communications Mark Hastings said: "It is also important to place their findings in some context.

"The GMB's finding that 73% of licensees have an average disposable income of £10,000 or below a year, compares with the fact that the average family in Britain has a disposable income of £7,400 a year.

"Likewise, average household debt in the UK is over £58,000, compares with the GMB's finding that 29% of licensees have debts of £50,000 or above, while 69% of licensees have debts below £40,000.

"Everyone recognises the recession has bitten hard and reduced incomes significantly.

"Equally, we are determined to work in partnership to make pubs and publicans more prosperous."