As part of the UK Government’s preparation for Brexit, the white paper, which was released yesterday, sets out how EU laws will be moved into the UK statute book to become UK law.
Commenting on the white paper, British Beer & Pub Association (BBPA) chief executive Brigid Simmonds said: “The Prime Minister’s primary objective, of providing businesses with certainty, is welcome.”
“The powers in this bill present opportunities for the Government to look at EU regulations that could be amended and improved to help our sector once Britain has left the EU.”
More competitive tax rates
Simmonds continued: “The decision to leave the European Union presents the Government with an opportunity to stimulate the brewing sector, by fostering a more competitive rate of tax for beer and pubs, that both supports beer as a low-strength alcoholic option, and supports the pub as a responsible environment for drinking.”
She said that the BBPA is also specifically calling for the current tax-break benefits that currently apply to beers of 2.8% ABV and below to be increased to 3.5% ABV. This is a measure not currently permitted under EU law. Simmonds added: “In line with our efforts around responsible drinking, we would urge the government to look at our proposal and raise this threshold to encourage innovation in lower strength products.”
Revise supermarket meals advantage
The BBPA highlighted further opportunities during the repeal process to amend current EU VAT regulation and to look at a VAT rate specifically for the pub sector. Simmonds said: “Currently all the advantages are with supermarket meals, which do not incur VAT. For example, a drop in the rate of VAT to 15% for pub meals could create 78,000 jobs and be a big boost for the economy.”
The association restated its position on protecting EU nationals currently working in the hospitality sector. “As the bill goes through its parliamentary process, there will be opportunities to remove more of the red tape that membership of the EU has imposed on businesses,” Simmonds said.
“One example might be the targets for packing waste legislation. The BBPA is ready for detailed discussions with individual government departments to ensure that any amended legislation works for our sector.”
Reduce red tape for pubs
Association of Licensed Multiple Retailers (ALMR) chief executive Kate Nicholls agreed that the white paper provided businesses with a more tangible focus after months of uncertainty.
She said: “The ALMR will be at the forefront of identifying and exploring opportunities in policy areas that most affect our members of the wider licensed hospitality sector.
“The white paper should allow for more diverse and flexible options for the Government on VAT and duty. It will also provide policy makers with a chance to reduce red tape in other aspects of operations for pubs, restaurants and clubs.”