Pubs fighting for survival month after reopening
By Rob Freeman | 5th August 2020
More than a third of pubs across the UK are struggling to break even - a month after they were first allowed to start reopening.
And a quarter of their brewing and pub sector felt their business was not sustainable beyond the end of March at current levels.
The figures come from a survey by the British Beer & Pub Association which showed 37 per cent of pubs cannot break even.
Pubs reopened from July 4 in England with staggered openings elsewhere in the UK, culminating with inside opening in Wales this week.
But they have had to deal with reduced capacity and increased costs due to social distancing and safety measures, while city and town centre pubs have seen fewer customers with nearby offices still shut.
The BBPA has welcomed initiatives such as the Eat Out To Help Out scheme and the VAT cut to food and accommodation in hospitality and pubs, but it says further support is still needed.
Chief executive Emma McClarkin said: "To ensure the full recovery of our sector, including Britain's world class brewers and pubs at the heart of communities across the UK, we need the Government to increase its support.
"£1 in every £3 spent in a pub goes to the taxman and now is the time to reinvest that money in our brewers and pubs.
"That means cutting beer duty by 25 per cent, as well as making the VAT cut permanent and extending it to beer in pubs to bring the cost of a pint down and unlock investment."
She continued: "Crucially, the Government must play a leading role in building public confidence to go out and visit pubs again, by delivering consistent and positive messages about their reopening.
"Our sector is a resilient one, and 75 per cent of brewing and pub businesses say they are sustainable at present, but that still leaves 25 per cent that are struggling and it would be catastrophic for our culture and economy if they are denied the support they need.
"Now is the time to recognise and invest in our pubs and brewers to secure them for future generations and to enable growth."
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