The coalition Government came to power at an incredibly difficult time for the industry. Not only was the UK suffering the effects of a recession, which saw people’s spending power cut and job uncertainty keeping them at home, we had also had two Labour chancellors who had, through the beer duty escalator, increased duty by some 48% in four years.
Fast forward five years and we see an industry in fine mood, with beer sales on the increase for the first time in 10 years, business on the up and a confidence in the future. After all those years of being the goose that laid the golden egg under a Labour chancellor, we’ve seen a Conservative one who has not only cut duty, but has given business rates reductions to pubs and made it cheaper and easier to employ people.
Relationship
In return, we said to the chancellor, if you support the industry, we will raise more money and employ more people, and we have done exactly that. This is a relationship that has been good for the treasury and has been good for brewers and pubs.
So why has this happened? As a Conservative, you would expect me to say that the Conservative Party understands and supports business better. However, most importantly, a relationship and an understanding has been developed between Government and the industry that has been beneficial to everyone.
My understanding is that the industry never met with the previous Labour chancellors as a collective, yet George Osborne has been keen to sit down and talk to the industry about what Government can do to help. The relationship between brewers, pub owners and MPs has improved dramatically and I think that is demonstrated in the successes we had in securing beer and pub-friendly policies.
Failures
It is also worth being very clear that the failures and mistakes that have happened with regards to legislation, like pubco reform, are, I believe, due to a lack of understanding on behalf of parliament and a lack of engagement from some quarters with those that make the decisions that affect your businesses and your livelihoods.
Overall, both the industry and its relationship with Government is in a better position than it has been for many years. The challenge is to build on that so that Government is a help, not a hindrance, to an industry that is so important for the economy and our communities.