The government’s proposed changes to employment rights are likely to undermine growth, the British Beer & Pub Association (BBPA) has warned.
It is calling on decision makers to avoid imposing new rules that could ultimately hurt workers.
The changes suggested in the Employment Rights Bill “seem destined to result in a framework of requirements that are more likely to stifle, rather than promote, growth,” the trade association said.
If the changes lead to an even higher cost of doing business, companies will have to make tough decisions, the BBPA outlined in its responses to the first set of consultations.
In its responses to initial technical consultations this week, the trade body urged government to address the concerns of businesses and allow them to remain flexible.
It warned that “its current proposals are likely to lead to a reduction in staff recruitment, slower wage growth and reduced investment”.
Andrew Tighe, the BBPA’s director of strategy and policy, said: “Our sector’s workers are invaluable and, of course, we want them to remain valued and treated fairly.
“However, we are concerned that the proposals could backfire as they are likely to have inadvertent and unfortunate consequences which could hurt workers.
“We fully back the government’s growth mission and know it values our sector, which is why we are warning that if we are to continue investing and supporting jobs, then businesses must be viable.
“We are calling on government to address businesses’ concerns so that we continue to be the backbone of the UK’s job market and carry on employing so many fantastic people.”
The BBPA warns the potential impacts will be compounded by the Budget announcements. Employer National Insurance contributions and spiralling employment costs will be exacerbated by the additional costs and administrative burdens that the Bill could layer on top.
The BBPA pointed out that the Bill does not adequately acknowledge that the sector is affected by seasonal demand, and its workforce values flexibility that allows them to prioritise their needs and commitments.
It is therefore vital, the association said, that the Bill rethinks its proposals in conjunction with the sector so it can continue to pour billions into the economy and form the backbone of the UK’s job market.
The brewing and pub industry in the UK makes a major contribution to the local and national economy. The sector generates more than £34bn to the economy, supports more than 1m jobs, and generates £18bn per year in tax revenues.
Despite huge economic and social value, taxes and rising business costs mean pubs were making just 12p a pint on average, even prior to the recent Budget announcements.
