The Labour Party is preparing to get to work following its general election victory, and we are waiting to see what they can do for hospitality and brewing.
The Campaign for Pubs set out its stall with its Manifesto for Pubs during the election campaign. It comprises:
- Protect our pubs: reform the planning system and practice.
- Action on energy bills.
- Fair tax for pubs.
- Stop the pubco rip-off and ongoing abuse of the beer tie
- A community right to buy
- Saving and supporting small brewers and the wonderful diversity of the UK brewing sector
Andy Slee, chief executive of the Society of Independent Brewers and Associates (SIBA), said: SIBA stands ready, and looks forward to working with the new government in Westminster and across the UK in helping independent brewers be a part of their plans for sustainable economic growth.
“Independent breweries are a hugely valued force for good in local communities, and right now, more than ever, need support to compete against the global beer giants that control the market, as well a tax system which sets a level playing field for pub and brewing businesses to grow.”
Nik Antona, chairman of the Campaign for Real Ale, said: “It was heartening to hear Labour’s announcement of a five-point plan to ‘end the decline of British locals’ during their election campaigning, and I hope that Labour will implement these proposals as soon as possible.”
He stressed consumer rights among CAMRA’s priorities, making sure there are appropriate descriptions of beers on bars, and ensuring full-measure pints.
He added: “In the run-up to the election, we heard Sir Keir Starmer and Rachel Reeves recognise the importance of beer duty to the trade. CAMRA will continue to fight for fairer tax, with an increase in the differential between draught and off-trade duty rates, and a VAT reduction on beer and cider sold in the on-trade so consumers can continue to receive all the social and wellbeing benefits pubs offer.
“In England, CAMRA hopes the government will improve planning protection and enforcement to protect pubs and social clubs facing unfair demolition, and to order pubs to be built brick by brick if necessary.
“CAMRA has long called for business rates to be completely reformed in order for pubs to avoid unfair over-payments. It’s great to see that Labour is committed to changing the outdated business rates system to make it fairer between online enterprises and bricks and mortar businesses like pubs.
“We also welcome plans to introduce a genuine community right to buy, which will help many loved pubs stay open and create exciting new opportunities for the sector to thrive.”
Emma McClarkin, chief executive of the British Beer & Pub Association, said: “We have long worked with the Labour party as they have developed their plans for supporting the British pub and brewing industry, and are encouraged by the enthusiasm Keir Starmer and his cabinet have shown in recognising its importance to communities up and down the country.
“It is imperative for any government to provide a sustainable and proportionate fiscal and regulatory framework that allows the sector to thrive. It must now cut beer duty and urgently reform business rates for the sector.
“We encourage all MPs to reward themselves with a well-earned pint or two in their local this weekend, and to get to know their landlords and brewers.”
John Webber, head of business rates at property specialist Colliers, said: “Given the size of the landslide victory, there should be no excuse for the Labour party to avoid addressing the business rates problem or to introduce significant reform, which will help protect the high street. We urge reform, as opposed to abolition, to ensure local authorities continue to receive the stable funding they need.
“After more than 30 years of mismanagement from successive governments, we now have a multiplier which, at over 50p in the pound, means a 50% tax on property occupation, a complicated relief system with business rates deserts in some parts of the country and an appeal system that’s inefficient, lacking transparency and increasingly difficult for businesses to negotiate without an adviser. The current system is just not fit for purpose.”
Saxon Moseley, partner and head of leisure and hospitality at audit, tax, and consulting RSM UK, said: “Hospitality businesses need to prepare for an increase in staff costs which will squeeze margins and potentially derail recruitment plans as Labour pledged to remove age thresholds and increase the national minimum wage rates to consider the cost of living. This could see the rates jump to nearer the real living wage levels.
“The result could be a whopping increase in wages of over 50% for workers aged 18 to 20 in April 2025, and an increase of almost 15% in those aged 21 and over, which will acutely hit the hospitality sector and its staff. In addition, if planned changes to zero-hour contracts come into play, operators will have less flexibility and may have to draw on more expensive agency staff to cover illness, holidays and peak periods.”
He added: “There are three quick wins that the new government could deliver to support the hospitality industry now.
“Firstly, replacing the business rates system to alleviate the biggest burden for hospitality businesses, and stimulate growth. Second, reduce the threshold for visas within hospitality roles to close the skills gap and help recruitment for key jobs such as experienced chefs, which the industry is currently lacking. Thirdly, cut VAT on food and drink sales to help businesses who have seen margins eroded in recent years.”
