GMB and BBPA clash over tenant income and debt

The GMB union has re-ignited its row with the British Beer & Pub Association (BBPA) over tenant income and debt.

Earlier this week, the GMB released a survey of 3,000 tied tenant members showing 73% said their annual income is below £10,000 and 29% had debts over £50,000.

In response, the BBPA said it compares to the average disposable family income of £7,400 per year and average household debt of £58,200.

In a new statement, the GMB pointed to the 2008 Living Costs and Food Survey to show the average net disposable income among UK families is £18,113. A survey from Credit Action shows average household debts excluding mortgages are £8,920.

In a strongly-worded letter to the BBPA, GMB general secretary Paul Kenny said: "Apart from comparing apples with oranges, what is really disturbing about your response is that it shows that BBPA has not listened to what pub tenants are saying nor that it understands what the economic problems in the industry actually are."

Kenny slammed the BBPA's "lack of care towards the plight of tenants" and said it's "about as much use to tenants as a chocolate fireguard".

Replying to Kenny, BBPA communications chief Mark Hastings said it took the Living Costs and Food Survey and applied it to 2009 average salaries to reach a disposable income of £8,985.

This is from an average salary of £20,660 minus tax and national insurance (£4,749), housing costs (£5,933) and fuel costs (£993).

On debt, Hastings questioned whether licensees were asked if it was secured or unsecured. "Mortgages are a valid component of household debt and this debt is not always secure."

Hastings also defended the BBPA, saying: "Our prime purpose and mission is to represent beer and pubs and promote the profile, profitability and prosperity of all the people who work in our great industry. We've been doing it for over 100 years.

"That is why we were the first organisation to highlight the current range of pressures on the pub, that are causing falling revenues, profits and incomes and the problem of escalating pub closures - which we first brought to the attention of the media, public and politicians in 2007."

He re-stated his view that the GMB's data must be seen in the context of the recession, which has left business revenues, profits and personal incomes "badly hit right across the economy".

Read BBPA's response to the GMB here.