BBPA: 'Pubs will close and it will be the end of the affordable pint'
Without cuts to beer duty and an extension of the 75% business rates relief on Wednesday 30 October, the sector faces more venue closures and job losses, the BBPA cautioned.
In a letter signed by 80 senior figures from across the pub and brewing sector, the BBPA has called for “urgent action” from the Government ahead of the fiscal address.
The letter, sent to the Chancellor, said: “Our industry faces a cost of doing business crisis.
Heart of a community
“We know ministers are aware of our challenges; we have highlighted them clearly in our representations to Government and it is why the five-point plan for pubs was devised on the campaign trail.
“If that plan is not delivered, we will see pubs close and the end of the affordable pint. When a pub struggles to survive, it cannot continue to be the beating heart of a community, keep employing staff, or contribute to economic growth.”
The association added despite recent freezes, UK beer duty remains nearly three times the European average, further compounding the financial struggles of the industry, and called for a freeze beyond February 2025 plus cuts over time to align with European averages
In addition, the association added pubs have been “disproportionately burdened” by business rates, which Labour pledged to reform in its pre-election manifesto, paying up to five times more relative to turnover compared to other sectors.
“Put plainly, for thousands of pubs and brewers across the country there is nothing left to give."
The letter also highlighted several other challenges “threatening the sector’s profitability”, including the proposed ban on outdoor smoking in pubs, which risks driving customers away and an anticipated rise in the National Living Wage, along with skyrocketing energy bills.
“The cumulative impact of these pressures cannot be underestimated. Each government-imposed measure adds to an already overwhelming cost burden, stifling growth and driving pubs out of business,” the BBPA added.
In addition, the association estimated some 50 pubs a month were closing their doors for good each month in England and Wales.
This comes as 11% of the nation’s pubs were found to be at risk of “imminent closure”, according to figures from accountancy firm Price Bailey released earlier this week.
Social cohesion
Moreover, the data showed pub closures had soared to the highest total in more than a decade last year, with 769 businesses having entered insolvency in 2023, up from 518 in 2022.
The letter continued: “Put plainly, for thousands of pubs and brewers across the country there is nothing left to give.
“Pubs and brewers contribute to the fabric of British life. Beyond their economic role, they are hubs of social cohesion, where communities come together.
“The Chancellor must recognise this in his upcoming Budget and ensure we do not lose more of these essential businesses.”
