Following yesterday’s general election, the BII is looking forward to working with the newly elected Labour government, particularly around their pledges for growth, safer communities and opportunities for all.

With new Ministers and MPs now in place, the BII will continue to take the voices of its members, mainly operating independent pub businesses across the UK, to those at the heart of Government.

Whilst inflation has come down in recent months, the impact of long term, embedded high costs in energy, food and drink, and staffing has been huge for pubs, especially with pandemic specific debt still hampering their ability to invest in their businesses to drive further growth. With National Living Wage inflation in particular, having a large ripple effect on roles across their businesses, they need investment and support from Government to help them weather the impact of these short-term issues.

Steve Alton, BII CEO commented:
“We are now looking forward to working with the new Government, to gain the vital investment that our members need to unlock their full potential. Our pubs are unique in their contribution, bringing huge economic impact, accessible, skilled jobs in every local community across the UK, and provide vital social value.

“Our sector has long been specifically referenced by all parties as a key part of our social fabric, as well as our economy. Our new Government must recognise the hugely unfair tax burden that our sector, and particularly the small, independent businesses have shouldered for decades. Our priority will be centred around working with Ministers, MPs and officials to reduce excessive taxation, provide immediate certainty of a continuation of the current business rates relief due to end in March 2025, as well as a full reform of this outdated and unfair rates system. 

“With 2 in 3 independent pubs either making a loss or breaking even, the need for investment is clear. If pubs are unable to thrive, we stand to lose so much more than small businesses in their communities.

 

We lose assets of immeasurable social value, connecting and caring for local people, reducing loneliness, raising millions for charity and so much more.

“The key to unlocking growth in every area of the UK, is investment in small businesses, towns and high streets, and at the heart of all of those lies the pub. Our pubs provide skilled jobs, careers and entrepreneurial opportunities for everyone, connecting people and communities in highly regulated, safe spaces, all whilst delivering significant tax revenue into the Treasury.

“Our members need certainty on the future for their pubs, livelihoods and teams, through a fairer approach to the tax they pay as bricks and mortar businesses, providing an experience that cannot be replicated online. 

“We will continue to encourage our members to share their challenges with their local MPs, showing them not only the support that is needed for them as small businesses at the heart of their communities, but also the essential and unique part they play in local economies, employment, supply chains and tax revenue into the Treasury.

“Our #MyPub campaign has helped members to engage with their local representatives, and with a large number of new MPs now in place, this is the perfect time to redouble our collective efforts in inviting them to see first-hand the huge positive impact pubs have in every village, high street, town and city across the UK.”

Stephen Owens, Managing Director of Pubs & Restaurants at Christie & Co, talks with Steven Alton, BII CEO about the resilience of pubs, the challenges pubs are currently facing and how they are adapting themselves in our current climate. 

I wrote to you last week to ask for your support in providing trading insight alongside your priorities for support and Government investment. A huge thank you to many of you who completed our short survey. We have used your insight in making the case for vital investment to the Chancellor ahead of the budget on the 6th of March. Your priorities of a VAT reduction for all pub sales and a long-term reduction in Business Rates are the key investments you need to secure and grow your pub businesses.

 

I hope the Christmas period has been successful for you and your teams.  It was incredibly positive to see so many pubs full over the last few weeks, once again being the heart of their communities and bringing people together. A huge thank you to you all for looking after your customers so well, and in particular those who opened their doors on Christmas Day to ensure people were not on their own.

Whilst many of you have shared that trading has been strong over the last few weeks, the exceptional cost pressures that you continue to face have severely impacted your ability to generate a profit.

We have consistently shared the realities of trading for pubs with Government and the need for investment in these vital, local businesses.  At the Autumn Statement, the Chancellor specifically referenced pubs once more and extended business rates support for pubs in England for a further year from April 2024.

Whilst for many pubs this was greatly welcomed, we were incredibly disappointed that the devolved nations did not choose to offer the same level of support. The Government has now announced the full Spring Budget will be held on the 6th of March, where we need to ensure the Chancellor recognises the critical opportunity to invest in pubs, supporting their future growth.

We have consistently made the case to Government for the opportunity to unlock this growth through lowering unfair taxes, with a priority on reducing VAT.  Our ongoing #MyPub campaign has this priority at its heart and we encourage you all to invite your local MP into your pub to gain their support ahead of the budget.

 

Firstly, a huge thank you to those of you who have already taken the opportunity to write to your MPs at this critical time. I can’t overstate how vital it is that MPs are left in no doubt about the importance of further investment in your pubs.

The Autumn Statement ahead is not a budget, however, the Chancellor can choose to further extend current measures, and you have been clear on the importance of early notice of the continuation of the current business rates relief for at least another year. We know that an extension of this relief to all of the devolved nations would also provide a huge amount of valuable support.

Pubs are clearly disproportionately taxed and we will continue to make the case for the overall reduction and reform in this area, with you telling us your priority is for a reduced rate of VAT, specifically for pubs and hospitality businesses.

Over the last couple of weeks, I have taken the opportunity to directly engage with Minsters, MPs and officials, making the clear case for investing in our nations pubs. At both the Conservative and Labour party conferences, I attended the All-Party Parliamentary Beer Group sessions, where there was strong support for our nations’ pubs from MPs in attendance. 

We now need to ensure that all MPs back our clear case for Government investment in our pubs, so I would ask that if you haven’t already done so, you take a few minutes to write to your MP via our #MyPub campaign.