Stoke-on-Trent brewery boss says Chancellor must do more for the pub industry

With just a day to go until Chancellor Rachel Reeves outlines Labour's first budget, we're hearing from Staffordshire and Cheshire's pubs and breweries who tell us more support is vital to stop the industry from crumbling.

Prime Minister Sir Keir Starmer said "better days are ahead" and that that any tax rises in the government's spending decisions "will prevent austerity and rebuild public services".

It's been widely speculated there will be a rise in employers' national insurance contributions.

Keith Bott MBE is a Director at Titanic Brewery Co Ltd in Burslem, Stoke-on-Trent. He told Hits Radio Chief Reporter Adam Smith:

"We've had some real pressure on us as a business. If the government decides employer national insurance contribution needs to go up, that's another cost we need to find.

"We desperately need the business rates situation to be resolved. Pubs pay a significantly larger amount of business rates than other businesses. We need a new system but don't take away the support we've already got. If they take that away there really is going to be a significant problem.

"As well, if we can, let's reduce taxation on beer that's served in pubs. There's an opportunity for government to do that.

"What we need to do is look at how we can narrow the price differential between pubs and supermarkets. So we really need to increase the differential between the beer duty on the large containers and the small containers, the bottles that are sold in supermarkets. That way we could encourage people to come back to the pub.

"The difficulty is that sites that are currently profitable and we enjoy running, become unprofitable and ultimately we have to close some of the sites we've got."

The BBPA is calling on the Government to use the upcoming Budget to cut beer duty, reform business rates, and pledge to keep the 75% business rates relief so that pubs and brewers can keep people in work and support more jobs.

A 5% cut in beer duty in the upcoming Budget would result in up to 12,000 additional jobs, mainly in pubs. This is due to the dynamic effects of increased prices at the bar reducing demand from consumers, who are sensitive to costs rising.

Figures show that pubs and venues make an average of just 12p on every pint of beer once taxes and costs have been deducted.

The industry is also facing multiple burdens and restrictions in the form of proposed packaging taxes and a potential beer garden smoking ban.

Emma McClarkin, CEO of the BBPA, said: “Our brewers and pubs are helping people around the country earn money, gain skills and experience, and support both the local and national economy.

“From those pulling pints to the farmers growing the hops, so many rely on our treasured beer and pub sector for their livelihoods and careers.

“But for the job market to flourish – and for us to keep supporting those jobs - it’s vital our sector is given the support it needs to continue.

“We are urging the Government protect the Great British brewing and pub sector - the beating heart of our communities - to ensure it can remain a driving force for growth, jobs, investment and social value whilst keeping the price of a pint affordable for all.”

The industry is one for the most heavily taxed business sectors per pound of turnover in the UK with tax making up 40% of UK brewing turnover and £1 in every £3 spent in pubs.

The BBPA warns any additional price increases, on top of the inflationary pressures of the last few years, would tip many beer and pub businesses over the edge.

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