15.06.2021

Every day of critical summer trading lost for pubs is a step closer to business failure

The Prime Minister’s announcement today will undoubtedly impact heavily on your already fragile businesses. We have consistently communicated to Government, that a delay at any stage of the already cautious roadmap which restricts your ability to once again trade freely and fully, will be hugely damaging to our whole sector.

We are in no doubt that Government have all of the information that they need about the real danger for your businesses, and want to thank you again for your continued support in completing our surveys, as well as the anecdotal insight you have provided to your BII Team.

We knew that there was a chance that every step on the roadmap could potentially be moved, if the data supported it, but with nearly 50% of the UK now fully vaccinated, we will be demanding full and immediate clarity from Government around what data is needed to remove any restrictions for good. Your pubs, at the heart of their communities are built on the resilience provided by the summer months, boosted by sporting events, large scale family celebrations and being an essential part of the UK tourism offer. Put simply, every day of critical summer trading lost, is a step closer to business failure. Whilst many outside of the hospitality sector may perceive this delay as being a small price to pay, for your pub businesses, with 16 months of severe disruption & closure behind them, any further delay requires further and immediate support.

We continue to put pressure on Government to extend the short term support that can be provided to help minimise the effects that these restrictions have on your pubs. We have left them in no doubt that this is a perfect storm, as the pressure of the debts that have mounted over the course of the pandemic are now meeting the large number of costs coming back on line for your businesses head on. With rent, business rates for England and loan repayments all becoming due in the next few weeks on top of already heavy staffing costs and mounting losses, any delayed return to full and free trading MUST be met with further short term support.

You, our members, have been very clear on your priorities for business support. We have called for the following immediate measures and will continue to push for:

Full business rate cancellation until April 22 for England, in line with the other devolved nations,

Further extension of the VAT cut at 5% until next year,

A targeted duty cut on draught beer served in pubs, and

Formal postponement of any form of Government debt, including Bounce Back & CBILS loans, as well as VAT payments.

Moving forward, I have been personally involved in meetings with Ministers about the ongoing support that you, our members, will need over the coming years to enable a full recovery of our nations’ pubs, those vital hubs in local communities that provide so much more than just a pint. Even without the delay, we know that the recovery of your businesses will be prolonged over many years, needing a long term plan to enable you to rebuild your livelihoods, whilst supporting local employment and providing the essential community service that has been missed so much over the last 16 months. We have seen the pent-up demand from customers desperate to return to their normal lives, but this delay and ongoing uncertainty will have far reaching consequences for every area of the hospitality sector, affecting the confidence of consumers, potential employees uncertain on the stability of jobs and essential investment in our viable businesses.

Critical to the recovery of our sector is the ability to simply trade free of restrictions and be able to plan for the future.