The British Beer & Pub Association (BBPA) and the heads of several major chains have urged the Government to give a date for when pubs can reopen.
The call comes after it was revealed today that trading restrictions and lockdowns caused sales of beer to plummet by 56%, £7.8bn, in 2020.
The BBPA and industry leaders have published their own recovery roadmap to reopen pubs fully after the current lockdown. The roadmap states that post-vaccination of the most vulnerable, pubs must reopen when non-essential retail and other parts of the hospitality sector reopen. It also says that mandatory trading restrictions – such as alcoholic drinks served only with a substantial meal, no mixed households and the 10pm curfew – should be removed when pubs reopen.
Upon the re-opening of the sector, the BBPA also said the Government will need to continue to provide financial support in the form of a stimulus package to ensure businesses do not fail due to unsustainable debt built up during the lockdowns. It added that an extension to the VAT cut and business rates holiday will be essential, as well as a significant beer duty cut, to help pubs trade profitably and start to recover from last year.
BBPA claims that without a plan to reopen, trade viably and give further economic support to stimulate recovery, thousands of local pubs will fail due to their unsustainable debt and cash burn levels.
Philip Whitehead, Chairman of the BBPA, urged the government “to provide clarity to our sector on when it can expect to fully reopen”.
He added: “After nearly a whole year under forced closure, or open but under severe restrictions, pub trade has been decimated and sales of beer in pubs have plummeted. Furthermore, due to their revenue falling off a cliff in 2020, pubs are holding debt and have little to no cash left.
“We need the government to continue to provide financial support for pubs when they reopen to bridge the gap to full recovery.”
Nick Mackenzie, CEO of Greene King, said 2020 was a write-off for pubs and the industry needed “a clear plan for reopening, without complex and unjustified restrictions which would make it unviable to open”.
He added that without additional support “there is a real risk of more viable businesses closing their doors in the weeks and months ahead”.
Mark Davies, head of Hawthorn, the Community Pub Company with over 700 pubs added: “I cannot emphasise enough how important it is that the government recognises the role that pubs play in so many communities around the UK and that pubs are part of the fabric of our society.
“It is therefore crucial that immediate financial support is secured for the pub sector with business rates and VAT an urgent priority.”
In response, a Government spokesperson said: “We will set out our plan for reopening schools and, gradually, the economy in the week of 22 February. Ministers regularly engage with the sector to understand their concerns and discuss how the sector can restart when it is safe to do so.”
