This is what the pub trade needs to see from Rachel Reeves if Britain wants to save its breweries and keep its pubs alive
With the Autumn Budget nearly here, the brewing and hospitality sector is bracing for yet another round of potential pressures
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After years of inflation, soaring input costs and a slow recovery from COVID, meaningful relief specifically for hospitality and drinks trade is essential if we’re to stem the tide of brewery and pub closures we’re witnessing across the UK.
Reports that the Chancellor could increase alcohol duty by as much as 4.6% are deeply worrying.
A rise of that scale would hit the entire supply chain hard - producers, distributors, pubs and, ultimately, consumers. Not only that, but it is also likely to fuel inflation too.
For many operators, margins are already razor-thin, and another sizeable duty hike would land at the worst possible time.
The broader tax environment facing hospitality has already stalled investment across the sector. If income tax, National Insurance or property-related measures remain unchanged - or worse, increase - many breweries, pubs and bars will have no choice but to scale back growth plans or close altogether.
The consequences go far beyond our balance sheets: hospitality closures weaken local economies, reduce employment and strip communities of vital social spaces.
Breweries and taprooms play a crucial role in regional life. We create jobs, attract footfall to local towns and help build the sense of community that defines so many towns and cities.
With the right support, our sector can be a significant growth engine - but it cannot be treated simply as a convenient revenue source.
Targeted interventions to address persistent skills shortages are also essential.
Encouraging more young people and career-changers into brewing and hospitality is critical if we want the sector to remain vibrant and competitive in the long term.
Whatever the Chancellor announces, it’s vital that the Budget recognises the importance of our industry and takes steps to protect it, not just tax it.
Without thoughtful intervention, the UK risks losing an entire generation of breweries and the much-loved pubs that sit at the heart of our communities.
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Steve Cox is the CEO of Keystone Brewing Group, their brands include Black Sheep Brewery, Hofmeister, Purity, Maison SASSY and more.
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