The trade body has said although there had been a 24% increase of the number of young staff employed in the on-trade before the Budget (281,770 in 2019), new employment costs onboarded to employers may mean tough decisions may have to be made.
Research cited by the BBPA shows more than half (51%) of the overall pub sector’s workforce were aged 16 to 24, which equates to pubs employing one in 10 of all under 25-year-olds in the UK job market.
The 2024 Oxford Economics research also revealed that prior to the Budget, the national insurance contributions for 350,000 under 25-year-olds was equal to approximately £82m – under new NICs announced in the Budget, this will now cost a £153m to maintain the same amount of under 25-year-old workers.
Significant opportunities
The east of England (66%) had the greatest proportion of 16 to 24-year-olds employed in the sector.
BBPA said the sector, which is millions of people’s first step on the career ladder, provides significant employment opportunities for young people and those seeking flexible work.
The group is calling on the Government to reconsider the timing of the new employment costs so businesses can better plan and carry on employing staff they need, rather than staff they can afford.
BBPA CEO Emma McClarkin said: “We know Government acknowledged our industry but they must be clear-eyed about the shattering effect new regulations will have on us.
Business needs to be viable
“Many will have worked behind a bar and know that it’s more than just a job. Our industry provides rewarding careers, helps younger people build skills, grow in confidence, and fund university education or driving lessons. Without this vital work many would struggle with rents, bills and basic living.
“If we’re to keep people in work and put money in their pockets, business needs to be viable. We urge the Government to reconsider the timings of the new employment costs and swiftly deliver meaningful business rates reforms. Only then can we continue to be the backbone of the UK job market and a cornerstone of the community.”
The British Beer and Pub Association’s figures shows that the Budget’s cumulative impact means, at a conservative estimate, a £500m increase to the cost of doing business for the industry and risks jobs.