Crisis facing hospitality industry as ’87 million pints of beer wasted’ and Becketts Southsea seek clarity on future support

Published by Rupert Douglas on February 5th 2021, 10:10am

As pubs and restaurants across the country are still closed under strict lockdown measures, the British Beer & Pub Association (BBPA) have today released the quantity of beer that has been thrown away across the sector. Up to 87 million pints of beer have gone to waste and at an average price of £3.81 in a pub that totals £331 million in lost revenue that the sector has been forced to destroy as the third national lockdown continues.

Emma McClarklin, Chief Executive of the BBPA, said that “our sector is in limbo. And at several points in the last 12 months pubs and breweries have effectively had to pour their revenues down the drain.

“We have no idea or clarity from Government on when we can re-open again. What we do know is if we cannot reopen in the near future, without further Government grant support and extensions to the job retention scheme, pubs and brewers will no longer have the cash left to survive and a wave of closures will be inevitable with jobs lost.

“Even when they can reopen, pubs and brewers are still likely to need Government support to help them kick-start their businesses again.

The calls for aid to the sector have been echoed by Terence Carvalho, General Manager of Becketts Southsea who, in his open letter to the treasury, wanted to see:

- Value of grants increased for businesses forced with closure

- Extension of the reduced VAT rate,

- Extension of the furlough scheme,

- Extension of the deferred VAT payment to 31 March 2022 (for VAT due 20 March – 30th June 2020)

- Deferral of unpaid PAYE tax and NIC until 31 March 2022

In response a treasury spokesperson said ‘significant support", including one-off grants worth up to £9,000, monthly grants of up to £3,000, and a £1,000 grant that was provided to pubs not serving food at the time during tiered restrictions when so-called "wet pubs" were forced to close

''We've also extended the furlough scheme until the end of April, provided 100% relief on business rates, and have cut VAT for hospitality businesses," they added.

At the upcoming Budget we'll outline the next stages of our plan for jobs to support businesses and families across the UK. That has been our priority throughout the past year and it will be the priority for the year to come.'

Photo by Louis Hansel @shotsoflouis on Unsplash

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Rupert Douglas
Junior Editor
February 5th 2021, 10:10am

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