{"id":17018,"date":"2020-07-09T12:43:51","date_gmt":"2020-07-09T11:43:51","guid":{"rendered":"http:\/\/craftbeer.wildaboutit.com\/?p=17018"},"modified":"2020-07-11T20:06:56","modified_gmt":"2020-07-11T19:06:56","slug":"chancellors-measures-a-welcome-first-step","status":"publish","type":"post","link":"https:\/\/craftbeer.wildaboutit.com\/?p=17018","title":{"rendered":"Chancellor’s measures a welcome ‘first step’"},"content":{"rendered":"
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Trade organisations have welcomed the financial measures announced by UK Chancellor Rishi Sunak to aid the nation\u2019s hospitality industry\u2026 but say it is only a first step on a long road to recovery from the coronavirus crisis.<\/p>\n

The British Beer & Pub Association (BBPA), the leading trade association representing brewers and pubs, said it was a positive package of support but highlighted further measures would be required to get independent craft breweries and thousands of community pubs, where food is not a focus, back on their feet.<\/p>\n

The chancellor announced a cut to 5% on VAT for accommodation and food in hospitality, also announcing an \u201ceat out to help out\u201d scheme to run during August, which would only apply to food and non-alcoholic drinks.<\/p>\n

The BBPA said the sector-specific VAT cut would provide a huge boost for pubs serving food and offering accommodation and would help compensate for an expected summer of reduced sales and revenue compared to before lockdown.<\/p>\n

Meanwhile James Calder, chief executive of the Society of Independent Brewers (SIBA), felt the announcements were a mixed bag, with the job retention bonus and kickstart scheme for young people being positive steps but the lack of incentives for 'wet-led' community pubs and the nation\u2019s 2,000 breweries being disappointing.<\/p>\n

\u201cThe job retention bonus and kickstart scheme will help beer, brewing and pubs given we employ a disproportionate number of young people,\u201d Calder said. \u201cThe temporary VAT cut to 5% and \u2018eat out to help out\u2019 scheme will help encourage people back into the pub. But we\u2019re very disappointed that beer, the UK\u2019s national drink has been excluded from the VAT cut and the eating out scheme. Today\u2019s announcements do nothing to directly help small, \u2018wet led\u2019 community pubs and independent craft breweries.\u201d<\/p>\n

But BBPA chief executive Emma McClarkin felt the chancellor had clearly communicated pubs and hospitality were safe and open for business.<\/p>\n

\u201cThe positive measures announced today are a welcome first step on what we believe will be a long road to full recovery for our sector,\u201d she said. \u201cThese initiatives, which we have been calling for, will be huge for pubs that serve food and offer accommodation, and will also help compensate for an expected long period of reduced sales and revenue for pubs.<\/p>\n

\u201cThe \u2018eat out to help out\u2019 scheme, taking place in August, will also help stimulate visits to thousands of pubs that serve great food. It will help show to consumers that our pubs are back open for business.<\/p>\n

\u201cOf course, for those pubs that do serve significant amounts of food or offer rooms to stay in, the cut to VAT for these to 5% will be a huge boost. Whilst the measures announced today will help food-led pubs, those who just serve beer may feel they are left wanting.\u201d<\/p>\n

Under the \u2018eat out to help out\u2019 scheme, government will cover 50% of the cost of food in hospitality up to \u00a310 per person per visit, but for pubs where revenue is more drinks led, the announcement provides little help.<\/p>\n

The trade association also welcomed the job retention bonus, stating it hoped it would help the sector bring back as many of its furloughed staff as possible.<\/p>\n

\u201cThe job retention bonus will help our sector to bring back as many of its furloughed staff as possible \u2013 with 90% of pub staff furloughed, it should help protect many jobs,\u201d McClarkin said. \u201cOur pubs directly employ 600,000 people \u2013 43% of which are under 25, making them a vital source of employment for young people in communities across the UK. We therefore welcome the \u2018kickstart job scheme\u2019 announced today for young people on Universal Credit.<\/p>\n

\u201cThe pub and brewing sector has huge potential to create thousands of new jobs and employ more people, but to do this it needs to be thriving, not just surviving. This will require more support in the medium term directed at all pubs and brewers so they can help lead with the economic recovery.\u201d <\/p>\n

But SIBA\u2019s Calder was disappointed to see announcements on reform of small breweries relief and a wider review of alcohol duties had been delayed again.<\/p>\n

\u201cTreasury have confirmed with us that the long-awaited announcements on small breweries relief reform and the wider review of alcohol duties have been delayed again, until such a time that the chancellor and his team can examine the issues in greater detail,\u201d he said. \u201cGiven the covid earthquake that has hit the brewing industry, we need a tax system that does what the chancellor set out to do for the whole economy: to protect jobs and to enable us to bounce back.<\/p>\n

\u201cThe only way that can happen is to reduce the overall tax burden, protect the relief for the smallest breweries and incentivise growth. We look forward to working with the chancellor on the future of independent brewing in Britain.\u201d <\/p>\n

Details Of Chancellor\u2019s Announcement<\/strong><\/p>\n

Job Retention Bonus: <\/strong>A one-off payment of \u00a31,000 to UK employers for every furlough employee who remains employed to January 2021. Employers must earn above the lower earnings limit (\u00a3520 per month) on average. <\/p>\n

Kickstart Scheme:<\/strong> A \u00a32 billion fund to create hundreds of six-month work placements for 16-24 year olds on Universal Credit. Funding will cover 100% of the national minimum wage for 25 hours a week, plus NI contributions.<\/p>\n

Traineeships:<\/strong> An additional \u00a3111m for traineeships in England to fund work placements and training for 16 to 24 year olds. The government will fund this through a \u00a31,000 grant to businesses.<\/p>\n

Apprenticeship:<\/strong> New payment of \u00a32,000 to employers in England for each new apprentice under 25 hired and \u00a31,500 for those over 25.<\/p>\n

Eat Out To Help Out:<\/strong> Every diner will receive a 50% discount up to \u00a310 per head on their meal at participating restaurants, cafes and pubs. It can be used unlimited times Monday-Wednesday on any eat-in meal (including on non-alcoholic drinks) for August.<\/p>\n

Temporary VAT Cut:<\/strong> From 15 July to 12 January, VAT will be reduced to 5% for supplies of food and non-alcoholic drinks from restaurants pubs bars and cafes. The cut will also apply to accommodation and admission to attractions.<\/p>\n<\/div>\n\t\t<\/div>

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