The British Beer & Pub Association has launched a new website to highlight the sustainability initiatives and innovations across the sector and which reinforces the sector’s commitment to reducing its environmental impacts.
BrewingGreen.org contains over 35 new case studies from brewers, pub operators, and supply chain companies across the UK and outlines the measures they are taking to combat climate change and contribute to the sector’s pathway to net-zero. It features initiatives from brewer and pub operators such as Asahi, Budweiser Brewing Group UK & I, Greene King, Heineken, Molson Coors, and Punch.
The website also includes details on both the Hospitality and Brewing roadmaps to net zero.
Emma McClarkin, Chief Executive of the British Beer & Pub Association said, “I am delighted to launch our latest version of Brewing Green in its new web-based format. By visiting www.BrewingGreen.org, stakeholders can follow our sector’s journey as it strives to reach net zero.
“Our sector has a proven history of environmental leadership and vision and which now extends to its ambitions to reach net zero ahead of the UK Government 2050 target. Having this website is a great platform for us to showcase the many exciting initiatives our members are doing in the sustainability space.”
The BBPA is urging consumers to support their local this Dry January by enjoying a pint of non-alcoholic beer at the pub including non-alcoholic beer on draught.This comes as they revealed that 7.8m pints of low and no alcohol will be sold this month but the majority of it will be sold in shops and supermarkets.
‘Dry January’ has always been a quieter month for pubs, with consumers reducing their visits to the pub as they abstain from alcohol but, as a result of the COVID restrictions which decimated pubs’ trade over the critical Christmas and New Year period (the BBPA estimates that pubs sold 37 million fewer pints over Christmas – worth £300 million in trade), the BBPA says it is vital that Brits support their locals this January and beyond.
Emma McClarkin, Chief Executive of the British Beer & Pub Association, commented:
“It has been a torrid Christmas for pubs, which now need the support of the communities they serve in the difficult months ahead.
“The range and quality of non-alcoholic beers in the UK has never been better. Some are now available on tap in pubs, making them the perfect option for those doing Dry January who are thirsty for a pint.
“If more of the 7.8 million pints of non-alcoholic beer we expect to be consumed this January are sold in pubs, it will be a big boost for our sector”.
The British Beer & Pub Association (BBPA) has revealed that Brits drank more wine and spirits – but less beer – during the 2020 lockdowns.
According to new data from the BBPA’s latest Statistical Handbook, during the lockdowns of 2020, the percentage share of alcohol consumed through wine in the UK increased by 2 percentage points while the percentage share beer decreased by 4 percentage points – with total beer sales in 2020 falling by 14.2%.
It means that during 2020 and the height of the pandemic and lockdowns, Brits consumed 33% of their alcohol through beer and another 33% through wine, compared to 37% for just beer and 31% for just wine in 2019.
Over the same period, Brits consumed 26% of their alcohol from spirits, up 2 percentage points from 2019.
According to the BBPA, the key reason behind the shift in drinking habits during the pandemic was due to the forced closure of pubs, which led to Brits consuming wine and spirits bought from supermarkets and shops instead of draught beer bought over the pub bar. Typically, 7 in 10 alcoholic drinks served in a pub are beer.
The trade association says the data shows how crucial pubs are to encouraging moderate consumption of alcohol through draught beer, which is on average 4.2% ABV.
It also said the numbers demonstrated the damage of lockdowns to brewers, who lost a key route to market when pubs were forced to close during the lockdowns of 2020.
At the recent Budget, Chancellor Rishi Sunak unveiled changes to modernise the alcohol duty regime in the UK to better incentivise the consumption of lower-strength drinks such as lower alcohol beer. This, the BBPA hopes, will aid British beer in growing market share once more, along with the reopening of pubs in 2021 where consumers are more likely to choose beer on draught over wine or spirits.
Emma McClarkin, Chief Executive of the British Beer & Pub Association, said,“Lockdowns and the shutting of pubs in 2020 meant Brits drank more wine and spirits, but less beer, than in previous years.
“With the pubs closed, its clear people turned to wine and spirits from shops and supermarkets rather than beer. Because of this, overall beer sales in 2020 fell by 14.2%. In short, sales in supermarkets didn’t make up for sales lost from closed pubs.
“It goes to show that when people visit the pub they primarily drink beer, which on average is 4.2% ABV, the lowest strength alcohol category and so ideal for moderate consumption. It is great to see the Chancellor recognise this and promote lower strength alcohol drinks with his changes to the UK alcohol duty regime announced in the recent Budget.
“With pubs open and trading again in 2021, we hope customers will revert to choosing a beer at their local – a safe and managed space at the heart of communities throughout the UK.”
The British Beer & Pub Association (BBPA) met with HM Treasury officials to make representations for the brewing and pub sector ahead of the Budget on October 27th.
The BBPA highlighted the vital role pubs and brewing play in supporting over 900,000 jobs in communities across the UK and contributing £26 billion to the UK economy across towns, villages, and cities. It told the Government that it must invest in pubs and brewers who have a leading role to play in the recovery, and underlined the importance of co-investment from Government in the form of a fairer tax burden and more level playing field with other European nations post-Brexit.
Emma McClarkin, Chief Executive of the British Beer & Pub Association, said, “As we count down the days to the Budget, it was very productive holding a meeting with HM Treasury to further make the case for investment in our sector in the form of fairer taxation.
“Investing in our brewers and pubs is investing in our communities and society to build back better. In return, we will create jobs, boost the local economy and help our communities reconnect and unite again.
“If the Government is serious about levelling up, it must get serious about reducing the tax burdens on our sector.”
Businesses will now be able to utilise furlough until the end of April 2021 following Chancellor Rishi Sunak’s announcement earlier today (17th December). Government-guaranteed Covid-19 business loan schemes which were due to close at the end of January have also been extended until the end of March. The move suggested Chancellor Rishi Sunak would provide “certainty and clarity”, for businesses and employees.
These changes come ahead of the Budget, which the Chancellor has confirmed will take place on 3 March 2021. This will deliver the next phase of the plan to tackle the virus and protect jobs, so the extensions to the business loan and furlough schemes enable businesses to plan with certainty and access support in the first few months of the New Year ahead of the further update on wider Covid-19 economic support.
The Chancellor said he would review the employer contribution element of the CJRS in January, but decided to bring this forward to allow businesses to plan ahead for the remainder of the winter and the New Year.
The government will continue to pay 80% of the salary of employees for hours not worked until the end of April. Employers will only be required to pay wages, National Insurance Contributions (NICS) and pensions for hours worked; and NICS and pensions for hours not worked.
Businesses will also be given until the end of March to access the Bounce Back Loan Scheme, Coronavirus Business Interruption Loan Scheme, and the Coronavirus Large Business Interruption Loan Scheme. These had been due to close at the end of January.
The government has already announced that more support will be available beyond March, through a successor loan scheme. More details of the scheme will be announced in due course, with the government providing a further update on wider Covid-19 economic support at the Budget on 3 March.
The furlough and loan schemes are part of the government’s wider plan to support, create and protect jobs through its Plan for Jobs. This includes the Kickstart Scheme, more investment in training and skills as well as the Self Employment Income Support Scheme grant, with a fourth grant being made available from February to April 2021.
UKHospitality Chief Executive Kate Nicholls said, “The extension of the furlough scheme with full Government contribution through to April and the longer period for applying for business loans are, of course, very welcome.
“However, with yet more of the country having been served notice of moving into tighter restrictions and 72,500 of Britain’s 110,00 licensed premises unable to open and a further 12,500 wet-led venues with little chance of reopening, more will be needed to safeguard jobs and businesses in a sector being seemingly singled out to bear the brunt of Covid measures. Without additional business support to accompany this extension, there will inevitably be more widespread business failures and job losses.
“The extended period for business loans applications is much appreciated but the sums available are insubstantial and eligibility rules are too narrow. Too many hospitality businesses will still be fighting for survival. To instil the business confidence necessary to plan for survival, we urge the Government to commit to a business rates holiday to cover the period of 2021/22 and a VAT cut extension through to the end of 2021. Such measures will give a vital lifeline to many businesses and enable them to play their role in the economy’s recovery later in 2021.”
Emma McClarkin, Chief Executive of the British Beer and Pub Association said, “Extending the furlough scheme and committing to a Government contribution of 80% through to the end of April is a hugely positive move.
She continued, “I hope the Government will now turn its focus to a support package to protect hospitality businesses as well as committing to a roadmap out of this crisis in line with the vaccine rollout. Pubs and brewers need enhanced grant support, extended business rates holidays and VAT reductions and a cut to the rate of tax on beer. It is only with that kind of backing that Britain’s brewers and pubs will be in a position to reopen, continue to employ all those staff currently furloughed and help lead the much-needed economic recovery.”
First Minister Nicola Sturgeon has announced that the 2-metre physical distancing rule had been changed to an optional 1-metre for the hospitality sector as long as businesses put in place “mitigations”. Yesterday the Government published an example of what would be expected in bars, pubs, restaurants and hotels.
• No standing – all customers seated
• Face coverings by staff
• Clear systems for safe ordering and payments
• Clear systems for safe use of toilet facilities
• Use of screens between seating areas
• Good ventilation
• Good signage
• Reduced noise measures e.g. no background music, to reduce the need for customers to shout
• Clear messaging on the need to provide contact details to support Test & Protect
The First Minister said, “Any changes to the physical distancing required should be simple enough to be effectively understood, implemented and followed. For example, clear signage will need to be in place to advise customers that they are entering a 1-metre zone so that people are aware both of the potentially increased transmission risk in such areas and that mitigations should be in place. In order to ensure effective implementation of mitigations, we must also ensure that appropriate processes and resources are in place. Furthermore, in many settings, additional staff training will be required. Workplace risk assessments must be undertaken where required. By way of example, depending on the specific setting, mitigations could include Perspex dividers; back-to-back seating; enhanced ventilation; face coverings; customer flow; restrictions on music in hospitality settings (leading to raised voices); and taking contact details for customers for contact-tracing purposes. Compliance with Test & Protect protocols will be critical.”
Now the Government will consult with the hospitality industry and will publish detailed guidance shortly ahead of opening on 15th July.
Meanwhile the British Beer and Pub Association (BBPA), British Institute of Innkeeping (BII) and UKHospitality have issued joint guidance to businesses on supporting the Government’s track and trace customer registration scheme.
The guidance has been jointly produced by It aims to provide clarity to enable businesses to take positive steps towards achieving the scheme’s public health objectives, as well as businesses’ obligations and practical tips to implement a successful scheme.
The core principles of the scheme, its objectives and practical solutions are explained, including:
What information should be recorded
How the information should be recorded
Relevant issues regarding GDPR.
In a joint statement, the trade bodies said, “There has been a significant amount of interest from both businesses and customers about the track and trace scheme and some confusion also.
“It is a core component of the safe reopening of businesses and it is something that all venues are going to have to get to grips with. This can help us to avoid a second spike and the disastrous consequences that would entail, for society and business.
“This guidance provides clear instructions to businesses on their obligations and reminds them why it is important that they make a success of the scheme. It is in the interests of everyone in the country that we all understand our role in the scheme and its importance in the context of the COVID-19 pandemic.
“Businesses are urged to read the guidance thoroughly and ensure that they have the proper procedures in place before they reopen their doors to customers. If they are unsure about any element, they should contact their trade association immediately.”
This is my first Sue Says in 11 weeks – that’s how long it has been since we have been in lockdown. Although I am not working full-time I am keeping up with lots of you on the phone and sometimes I just don’t know what to say. And as all of you that know me you will know how unusual that is.
What do you say when someone says they can’t sleep at night because they may have to let go of a third of their staff in the next few weeks? And that is not just the news from one person. What is evident is that we are a long way from opening viably at the moment and even then further support from the government will be needed, and even then there is going to be a tsunami of lost jobs and that is not far away. Nobody wants to lose staff but there is no other option as these businesses fight to survive.
We all know 2m will not work in the licensed trade – even if you have an outside area – you might get away with 1.5m but ideally it would be 1m or no social distancing at all. But for that to happen the dreaded ‘R’ rate has to come down. Fundamentally that is what is holding everything back. Health is trumping businesses, and so it should. I would love to see an advertising campaign and a social media campaign that urges folk ‘We need you… to be sensible so that pubs, restaurants, and hotels can open, and jobs can be saved!’ I would urge you all to spread this message to your staff, to your customers, and to anyone that will listen.
The trade is still looking for Government help. It is a scandal that the biggest employers in the trade have had the least support from the Government. Those with a RV of over £51K didn’t get the hospitality grants – instead businesses have had to take on extra borrowings, although some have now managed to get a hardship grant or a pivotal grant which is something. Mind you I have heard of a few who have got grants for all their properties and Bounce Back Loans – they are the lucky ones that are feeling flush! But they are few and far between.
There are many other measures needed. There needs to be a special Coronovirus Job Retention Scheme (CJRS) for hospitality, rates need to be halted for another year, and the RV reset. Landlords need to be supported to give rent holidays or reductions, further grant support is still needed, and local government needs to be supportive. It is essential that planning departments and licensing relax the rules and that LSO’s are supportive of premises in their areas. Glasgow’s council leader has said that her plans include widening pavements by removing on-street parking and closing off some whole streets so people can walk or cycle, and cafes, bars, and restaurants can better utilise the space outside their premises and resume trading. I hope she has told planning!
We need marketing support to get people back out and we need an international marketing campaign and on and on…
People ask me when do you think we will open? I don’t know. Nobody does. I would guesstimate mid-August if the ‘R’ rate comes down. But it really has to or we may be open, and before long we will be closed again. I would hope the Scottish Government would give us a date before the end of July which would give us three weeks to get organised but we also need a set of guidelines to be issued as soon as possible and hopefully, they will get key players/operators to help them with these. Certainly, the trade has reached out to the First Minister to offer the Government their support. I hope they take them up on it.
While all this is going on – and I have to take my hat off to the trade bodies the STA, SLTA, UKHospitality, BBPA – they have been working endlessly on your behalf. If you haven’t got a membership of at least one of these bodies it is time to get one now – I have also been astounded by the creativity of the trade.
The shock of the first month left people paralysed but then they got right back up and on it. Take-aways galore, from Sunday dinners to cocktails… many have been supplying the NHS and essential workers with food – from The Ivy in Glasgow who I hear has been feeding paramedics to Lisini who provided meals for vulnerable people and the Tiki Bar who fed NHS staff. Hotels groups like Manorview and Ten Hill Place in Edinburgh have been providing rooms and the list goes on. In fact, I am going to change some of our awards – which will take place – to include our heroes in the licensed trade. There are a lot of positives – not least people’s support of each other and the kindness that has been exhibited by the trade. It has always been resilient and it continues to be so. The good work being put in won’t be forgotten when your customers return.
Scottish bars, pubs and hotels can now access a free cross-industry platform and get permission from their brewers to destroy spoilt beer and cider following the launch of www.ReturnYourBeer.co.uk by the British Beer & Pub Association (BBPA). It is estimated that up to 70 million pints of British beer from UK pubs will have to be destroyed. Being able to reclaim excise duty on this beer will be worth tens of millions of pounds to the on-trade.
The cross-industry platform enables participating brewers, who include Budweiser Brewing Group UK&I, Heineken, Molson Coors, Innis & Gunn, Carlsberg, Asahi and Marstons, C&C (but not Tennent’s or Belhaven) to manage the safe destruction of their brands in pubs and for the millions of pounds in excise duty from unsalable beer to be reclaimed and the appropriate and agreed recompense passed back to licensees.
Licensees with spoilt beer and cider in their cellars can access the platform by visiting www.ReturnYourBeer.co.uk via mobile, tablet or computer and creating a profile. Once their profile has been created they can follow guidance and instructions on the platform to seek permission from the brand owner to destroy their beer and cider in an environmentally friendly manner in compliance with local water authorities.
Licensees can also record destruction through the platform enabling duty to be claimed back by brewers, who will then agree the means of reimbursing the customer
By using the platform, businesses such as pubs, hotels, bars and clubs will be able to destroy draught beer and cider that has become spoilt as a result of the COVID-19 lockdown and free up space for fresh deliveries, enabling them to restock and get cellars ready for re-opening.
More brewers are expected to join the platform, making it even easier for licensees to help clear their cellars and re-stock in preparation for re-opening.
Originally created and developed as a concept by Budweiser Brewing Group UK&I, the site has been handed over and further developed as a wider industry platform by a BBPA steering group composed of brewers and pub operators.
From launch, the site will be administered on behalf of the sector by the British Beer & Pub Association. Whilst the site has been developed for broad use across the sector, licensees who run a Managed or Leased & Tenanted pub are reminded of the need to check with their pub operator first before attempting to use the site to clarify whether an alternative approach is preferred.
Emma McClarkin, Chief Executive of the British Beer & Pub Association, said, “We’re encouraging businesses with spoilt beer they need to destroy to visit www.ReturnYourBeer.co.uk and pre-register. The platform will provide guidance and instructions necessary to destroy beer, as well as crucially recording that destruction to enable duty to be claimed back on it. We estimate this could be worth tens of millions of pounds of credit flowing back to pubs and the wider on-trade. Crucial at this hugely challenging time.
“This cross-industry platform is free to use and should help businesses of all shapes and sizes who serve draught beer as they re-stock and re-fresh ahead of re-opening.”
As duty is already paid by the brewer on the beer held in pubs, HMRC demand transparency over the process of disposal and the volumes of beer involved before brewers can reclaim the duty on unsold stock and re-credit customers. This web tool enables licensees to securely record the volumes of beer in full and broached (part-sold) containers held in their cellars and communicate these to brewers in a cost effective way.
What do licencees have to do ?
Pre-register via the returnyourbeer.co.uk website to enable brewers to begin the process of verification required before beer disposal can be authorised.
Once verification is agreed licensees will be taken through a step by step process to safely record volumes of beer disposed of according to BBPA-endorsed processes.
HMRC have agreed with BBPA that photographic evidence supplied by the licensees will be acceptable and the website enables the publican to upload these images to verify the volumes of stock destroyed and the process undertaken to conform with Environment Agency and local Water company consents.
What will the brewers do with this data ?
The data will be cross-checked with the brewery to ensure the volumes correspond with volumes of beer sold to customers. The data will remain confidential to the brewers involved and will only be used by the brewers to calculate duty reclaims from HMRC (as agreed) and to enable either a re-credit of the duty amount or like-for-like replacement of stock at no additional cost depending on the individual brewer policy.
How many brewers brands are included within the scheme ?
All of the top selling beer brand owners are supporting this initiative on launch and along with some regional brewers, we are envisaging that brewers producing c.90% of unsold draught beer remaining in pubs will be part of the BBPA scheme. The benefit of the website will be especially felt by outlets and pub businesses with multiple lines of different brewers’ brands held in their cellars as it provides a single point of entry of data aimed at a number of suppliers.
Why can’t the beer just be poured down the drains or returned to the Breweries ?
The beer volumes involved would present challenges for the water supply if the disposal is not carefully managed in a phased and controlled way. The weight of full containers in cellars present a significant manual handling risk, as well as particular logistical and safety challenge during this period. Brewers would therefore prefer the kegs and casks to be emptied prior to their collection where possible.
Who is paying for the website ?
The start-up costs and ongoing maintenance of returnyourbeer.co.uk are being met by the participating brewers.
The Coronavirus Job Retention Scheme has been extended until the end of October and more flexibility will exist from August Chancellor Rishi Sunak revealed at a press conference today (May 12).
He said that from the start of August, furloughed workers will be able to return to work part-time with employers being asked to pay a percentage towards the salaries of their furloughed staff.
The employer payments will substitute the contribution the government is currently making, ensuring that staff continue to receive 80% of their salary, up to £2,500 a month.
The news came following speculation that the Chancellor was going to reduce the scheme, which currently pays 80% of employees’ salaries, to 60%.
Instead Chancellor Rishi Sunak said, “Our Coronavirus Job Retention Scheme has protected millions of jobs and businesses across the UK during the outbreak – and I’ve been clear that I want to avoid a cliff edge and get people back to work in a measured way.
“This extension and the changes we are making to the scheme will give flexibility to businesses while protecting the livelihoods of the British people and our future economic prospects.
“New statistics published today revealed the job retention scheme has protected 7.5 million workers and almost 1 million businesses.
“The scheme will continue in its current form until the end of July and the changes to allow more flexibility will come in from the start of August. More specific details and information around its implementation will be made available by the end of this month.
“The government will explore ways through which furloughed workers who wish to do additional training or learn new skills are supported during this period. It will also continue to work closely with the Devolved Administrations to ensure the scheme supports people across the Union.”
As we reopen the economy, we need to support people to get back to work. From the start of August, furloughed workers will be able to return to work part-time with employers being asked to pay a percentage towards the salaries of their furloughed staff.
“The employer payments will substitute the contribution the government is currently making, ensuring that staff continue to receive 80% of their salary, up to £2,500 a month.
Marc Crothall, Chief Executive of the STA said, “The Chancellor’s announcement of the extension of the current Job Retention Scheme until the end of October will offer comfort to many within the tourism industry and is very much welcomed. The STA has worked tirelessly to communicate the necessity for flexibility in the scheme through our daily conversations with the Scottish and UK governments.
“As always, the devil will be in the detail. Given the dependence of Scotland’s tourism industry in terms of seasonality; assurance will not be felt by all. There are a great many businesses that will not survive beyond October as it will simply not be viable for them to start trading again until the Spring. Sadly, the extension to furlough alone will not be sufficient to stop many businesses from making redundancies, however, we look forward to learning more detail over the coming weeks.”
While Emma McClarkin, Chief Executive of the Scottish Beer & Pub Association, said, “As a sector employing nearly 70,000 people in Scotland and where 90% of the staff have been furloughed, we cautiously welcome the extension and increased flexibility of the Job Retention Scheme by the Chancellor today.
“The extension is particularly important to pub and brewery staff as they will not be able to return to their work as quickly as other sectors. However, if pubs and breweries are expected to pay a proportion of furlough costs whilst remaining closed, it could still lead to significant job losses for our sector. Pubs and breweries cannot remain closed with no revenue coming in but be asked to cover a higher proportion of employment costs.
“The increased flexibility announced today allowing for part-time working is also imperative and welcomed. It will enable pub and brewery staff to come back on a part-time basis, which will be crucial as pubs and breweries re-open under social distancing restrictions.
“The UK Government has done absolutely the right thing by extending the scheme and we hope it will prevent job losses. We will await to see the full detail at the end of the month so that we understand how much it will help our sector and how it will work in conjunction with the re-opening plans for pubs and breweries. There will also have to be extra considerations for those in Scotland and the other devolved nations, where restrictions will likely last longer.
“In the meantime, we continue to urge both Governments to bridge the significant gaps in the current financial support our sector faces as we ask them to help us get back on our feet whilst we re-open under social distancing conditions. This means removing the £51k rateable value cap on grant eligibility as well as extending grants, improving access to loans, and further support for brewers on beer duty.
“Without additional financial support specifically for pubs and brewers, the social hubs and heart of communities in many towns, villages and cities across the UK will remain at risk.”
The British Beer and Pub Association, British Institute of Innkeeping and UKHospitality have sent a joint letter to the Chancellor of the Exchequer, calling for measures to save the future of pubs including the extension of the furlough to the end of 2020.
The associations wrote the letter following the announcement on 10th May from PM Boris Johnson that pubs in England will remain closed until at least July. Scotland’s First Minister Nicola Sturgeon’s has also made it clear that the Scottish hospitality sector will not open any earlier.
The associations, who between them represent owners and operators of 35,000 pubs across the nation, asked Chancellor Rishi Sunak for:
– An extended, more flexible furlough scheme to the end of 2020, tapered to encourage people back to work only when it is safe, and gradually, if appropriate.
– Removal of the £51k rateable value cap on grant eligibility, to open funds up to the 20% of pub and hospitality companies that represent the bulk of trade and employees.
– Improved accessibility and eligibility to loans to ensure that businesses can access the necessary funds to survive.
– Additional support to brewers of all sizes, including on beer duty and access to grants and rates relief.
In a jointly issued statement the three associations said, “There are few things more cherished than the British pub. The current crisis casts an existential shadow over the future of these national treasures and we are calling on the Chancellor to act, before many of them – and their valuable jobs, social benefits and economic contributions – are lost to us for good.
“We know that pubs, hospitality and brewers can be crucial in driving economic recovery. We thank the Chancellor for his support thus far but urge him to enable venues across the country to play their role by opening in a safe fashion, when the time is right. Surviving the crisis can only happen with further support from Government, allowing pubs to not only pull through but deliver future prosperity.”
Scottish finance secretary Kate Forbes and economy secretary Fiona Hyslop have already written to the Chancellor looking for reassurances that the government won’t penalise Scottish workers if lockdown eases at a different pace north and south of the border. In the letter to the Chancellor they said, “We understand that the support will need to be scaled back over time, but it is imperative that is done in a carefully considered way, and reflects the economic priorities of each of the four nations and the different sectors of our economies.”
UKHospitality has also requested the continuation of the 80% furlough pay until the end of September with a tapered scheme until the end of the year, the removal of the three-week maximum period to increase flexibility among reopening businesses and sector-specific part-furlough schemes with pay shared between the Government and the employer.
The British Beer & Pub Association (BBPA) has produced protocol and guidance helping pubs to destroy beer in their cellars without having an Authorised Company Representative (ACR) from a brewery or supplier present.
HMRC have confirmed that the details contained within the guidance created by the BBPA are consistent with, and support, their requirements.
During the COVID-19 epidemic, the normal rules for the destruction of unsaleable beer have been relaxed by HMRC. Rather than an ACR being present to supervise destruction of beer, it can now be undertaken by designated pub staff such as a licensee.
The change in rules allows for duty paid on unsold beer to be recovered, and for the brewer to pass that reclaimed duty back to their pub customer, so long as they follow the protocol.
Destroying beer remotely at licensed premises is an undertaking that cannot be considered without the approval of the owning brewer. It is imperative that such approval is sought either directly from the brewer or – if the beer is supplied by a third party – through the supplier who has in turn secured approval from the brewer.
The protocol on beer destruction created by the BBPA is free and accessible to all who wish to use it and can be found on the BBPA’s dedicated COVID-19 webpage which is updated daily: www.beerandpub.com/policies/covid-19
Emma McClarkin, Chief Executive of the British Beer & Pub Association, commented, “HMRC’s decision to provide additional flexibility in these extraordinary times – as the BBPA called for – has been extremely welcome.
“This guidance the BBPA has produced, approved by HMRC, gives clear guidance to pubs on how they should destroy their beer and how they need to record it, ensuring the destruction is safe for staff and done in an environmentally responsible manner.
“Following the guidance will help ensure excise for unsold beer gets back to brewers and credit gets back to pubs, so I urge all licensees and operators to use it.”
COVID-19, Destruction of Beer in Pub Cellars
Scope
The BBPA recognises that the pressures faced by brewers during the COVID-19 pandemic are diverse. For those producers who may require it, this guidance is intended to clarify the practical requirements of the recent relaxation of the rules regarding destruction of beer by HMRC. In particular to allow destruction of beer remotely in pub cellars in such a way that the beer duty is recoverable from HMRC without the need for an Approved Company representative of the brewery being present.
The advice offered within this guidance should not be interpreted to mean that normal practices will not resume at a later date if remote destruction is not deemed necessary or possible due to COVID-19 guidance, furloughed workers, or a risk to health and safety.
In some instances, brewers have already indicated to their customers that they will uplift and replace all unused stock when it is safe to do so. Under such circumstances it is important to communicate that customers must not attempt to destroy beer.
HMRC confirm that the details contained within the guide are consistent with and support their requirements.
Introduction
During the COVID-19 epidemic the normal rules for destruction of unsaleable beer (ullage) have been relaxed by HMRC. Rather than an Authorised Company Representative (ACR) being present to supervise destruction this process can be undertaken by designated pub staff i.e. licensee and providing the brewer has authorised them to do so and that brewer claiming the relief is satisfied that destruction has taken place and retains suitable evidence i.e. in the form of a digital recording.
This easement allows for duty paid on unmerchantable beer to be recovered, and for the brewer to pass that reclaimed excise back to their customer in a manner of their choosing, explained below.
During this period there will be continuing requirements regarding:
The audit trail confirming destruction of duty paid beer
Evidence of a full credit of the duty paid, or replacement of the goods to your customer or the owner of the goods at the time they became spoilt
The need for breweries to maintain their spoilt beer record
Destruction away from registered premises will need to continue to comply with other regulatory and contractual conditions; for example, those of the Environment Agency or your local sewage undertaker.
Protocol for Destruction
Destroying beer remotely at licensed premises is an undertaking that cannot be considered without the approval of the owning brewer. Such approval must be sought either directly from the brewer or if the beer is supplied by a third party, through the supplier who has in turn secured approval from the brewer.
Where permission is granted, beer is destroyed to allow the recovery of duty that has been paid and which must be credited to the brewer after destruction.
Destroying beer in this manner will also help to ease anticipated future pressure on the logistics and supply chain by enabling recovery of larger numbers of empty containers when restrictions on movements have been lifted. Uplift of full containers, particularly from subterranean cellars, needs to be carefully considered and may not be possible whilst social distancing is in place. An approach to this will be addressed under separate BBPA guidance.
Destruction of beer to recover duty is typically on the basis that beer has become unmerchantable. In the first instance this guidance is likely to be applied in preference to any broached container, particularly that in cask, which will not be suitable for sale within days once placed onto the draught dispense system for sale.
Destruction of un-broached containers is likely to be less of a priority and may be considered at a later date, in particular with reference to the best before date of these containers.
1. Destruction of Beer
Until otherwise stated, the rules for destruction of beer in order that duty can be reclaimed have been relaxed to allow nominated pub staff to undertake this process on behalf of the owning brewer.
The following must be observed by those nominated to undertake destruction of beer:
A verifiable form of instruction/request from the owning brewer/operator that the beer can be destroyed i.e. email
Any form of permission to destroy beer must include the following:
Identification of product (name and beer style)
Identification of product strength
Identification of all container size/type (i.e. firkin, kilderkin, Euro 30L etc.)
When destroying beer, accurate records of the following must be kept:
The total volume of beer emptied from each relevant container. Where it can be demonstrated that containers have not been broached, the nominal volume of the container will be used.
The strength of each beer that is emptied
The time, date and location (pub name and address) of emptying for each relevant container
The name and position of the person who undertook the destruction, and confirmation they were so authorized by the responsible Owner/Manager/ Tenant
You must create separate entries for each container you destroy. Each claim must contain the information above and be supported by additional photos and/or the self-certification declaration in Appendix 2.
Given the large amount of claims this will create overall, pub staff should be mindful when contacting the brewer or supplier of:
The amount of claims to be made,
Whether it is possible to stage claims over time (by Best Before dates, for example), and
The file size of any digital communications i.e. with photo attachments. Please keep file sizes as small as possible to avoid overloading inboxes, use cloud storage systems (i.e. DropBox) which allow file/photo sharing.
Samples are not required to be taken given the complexity of managing this process.
The volume of beer that is to be destroyed must be accurately recorded i.e. using dip stick (cask only), a graduated measuring jug or cylinder. Beer may be emptied into a bucket or large container before being poured to drain.
In the case of beer casks the liquid contents can be emptied directly from the container. However, unless pub staff are trained in the use of specialist equipment expressly intended for the purpose of directly decanting beer from a pressurised keg, the only way to safely dispose of keg beer is through the dispense system. Under no circumstances should attempts be made to access the keg via any other means i.e. by attempts to remove the safety spear.
2. Minimising Environmental Impact
Beer that is emptied from containers, particularly from casks, can be destroyed by being poured down the drain. However, it must be considered that large volumes of beer destroyed in this way can put strain on the sewage system and may also cause environmental damage.
Before destroying beer to drain it is important to consider the waste set-up for the premises in question to understand the appropriate steps to take to minimise strain or damage to the sewage system.
If a pub waste system connects with the local municipal sewerage system then before destroying beer to drain, and in order to avoid any risks of prosecution associated with overwhelming the local sewage plant, you must first contact the water retailer for the premises who will liaise with the local sewerage undertaker to discuss and advise on any requirements for controlled destruction i.e. reduced rate of addition or dilution.
The water supplier will need to know:
Location of the site of destruction (i.e. address of the pub)
Volume of beer to be destroyed
In some cases, i.e. rural communities, it is possible that a pub does not have a local sewage connection and instead will access a small local or on-site waste treatment plant. If this is the case, destruction of beer to drain will likely represent a high-risk activity which could overwhelm the sewage treatment system. Beer can also act as a pollutant if it enters a watercourse and for instance strips out the oxygen that fish and other aquatic life depend on.
In this instance, before destroying beer to drain, you must contact the local EA office to understand what may be required to comply with a local discharge consent. This may also dictate whether it is possible to destroy beer on-site or not.
3. Allocation of Recovered Duty
The flexibility provided by HMRC allows for an expedited system of beer duty recovery. However, we cannot stress enough that any destruction carried out by a designated pub staff member, if they want to receive credit, must first get written agreement from the brewery to destroy the beer.
If your beer is not provided by the brewery directly, your wholesaler or pub company will need to provide the written agreement on your behalf. See the appendix for examples.
HMRC are allowing:
Pubs to recover the cost of the beer duty on each container as credit from the brewer, or
For the brewer to replace the product when they are able to do so safely. The latter will be a commercial matter between brewer and landlord or supplying company.
If a brewer is unable to reclaim the duty due to insufficient evidence on an audit for HMRC’s purposes, you will NOT receive credit or replacement stock or will be potentially re-invoiced should HMRC discount the claim after credit is given. Brewers may also perform risk-based assessments of trend monitoring through stock control records to establish that recordation is a true and an accurate reflection. Brewers have a duty of care to HMRC in this instance to ensure duty reclaimed is accurate.
For broached containers, the volume must be measured using a method outlined above, with any undrinkable sediment (casks only) being deducted. Where the container is un-broached, then the container type (i.e. firkin, Kilderkin, Euro 30L) will indicate the nominal contents to be used as the volume destroyed.
Once destroyed, the member of staff must complete an electronic ‘Self-Certification Declaration’ form, a template for which is provided under Appendix 2. This should be completed immediately following the destruction. Where this form is emailed, the email shall be retained as evidence for the publican, supplier and brewer.
For brewers, all documentation relating to the destruction of unmerchantable beer must be retained and be available for inspection by HMRC for a period of six years.
With the general election just weeks away, the British Beer & Pub Association (BBPA) has published a manifesto for beer and pubs, outlining what the next Government should do to help the industry thrive.
British brewing is a world-class manufacturing sector and over 80% of Britain’s 48,000 pubs are run as individual small businesses, but they face major challenges, the manifesto says. This includes a disproportionate tax burden, especially when it comes to beer duty and business rates, meaning one in every three pounds spent in the pub goes to the taxman.
The manifesto therefore urges the new Government to commit to backing the 200,000+ supporters of the Long Live the Local campaign, who have signed the petition calling for a cut in beer tax.
Furthermore, the manifesto highlights that as labour-intensive businesses, pubs also face sharply rising costs in the form of the National Living Wage, pension auto-enrolment and the apprenticeship levy. This, it notes, is also combined with an acute shortage of pub chefs and kitchen staff at a time when a quality food offer is becoming critical for pubs to thrive.
The manifesto also describes how pubs and brewers have a unique role to play in a post-Brexit world, ranging from helping British businesses and tourism thrive, to enhancing Britain’s reputation overseas. However, to achieve this, the manifesto outlines that the UK needs the most competitive tax and regulatory regime in Europe post-Brexit.
As an industry that employs 900,000 people, adds £23 billion to UK GDP and contributes £13 billion in tax revenue, the trade association is calling on all political parties to commit to support UK beer and pubs by:
Implementing a real-terms cut in beer duty over the course of the next parliament
Backing the 200,000+ supporters of the Long Live the Local campaign
Addressing the unfairness of the business rates system
Recognising the growing cost burden of pub businesses
Not adding further burdensome regulation to the beer and pub sector
Providing greater flexibility to promote and market lower strength beer
Enabling a trading relationship with the EU that allows for the seamless movement of beer
Emma McClarkin, Chief Executive of the British Beer & Pub Association, said, “Pubs and brewing are not only vital to the UK economy, but to our culture and way of life as well. The next Government must recognise this and work to create an environment in which they can thrive.
“Our manifesto sets out what the next Government can and should do to support our sector. I hope candidates in all parties recognise the importance of brewing and pubs in the communities they seek to serve, and help promote these policies our sector urgently needs.”
Sales of beer in the on trade increased by 0.1% on full year 2017 sales, according to the latest Beer Barometer sales data from the British Beer & Pub Association (BBPA).
Increased beer sales in Q2 and Q3 2018 were driven in part by good weather, say the BBPA.
Pubs also benefited from a strong end to 2018 with beer sales growing by 2.2% in Q4 2018 compared to the same period in 2017. This was the first time Q4 beer sales grew in the on trade since 2011.
Brigid Simmonds, Chief Executive of British Beer & Pub Association, said, “2018 has been a good year for beer and pubs. Considering the heavy cost burdens the industry faces from high beer duty, business rates and rising costs in general, it’s great to see beer sales doing the best they have for some years.”
“The Chancellor’s decision in the 2018 Autumn Budget to freeze beer tax also appears to have had an immediate impact, with sales of beer in pubs growing in the last quarter of 2018 by 2.2%. This shows just how important reducing the beer tax burden is to boosting sales of beer and helping pubs with their footfall.
“As
the UK’s alcoholic drink of choice, which continues to have a much
bigger, positive impact on the UK economy than any other drink, it is
important that beer continues to do well and that the Chancellor
continues to support pubs.”
British Beer and Pub Association (BBPA) Chief Executive Brigid Simmonds (pictured) has described a 480% fee hike proposal from PPL as “eye-watering” in a climate where licensees already face significant cost pressures. The rises apply to its Specially Featured Entertainment (SFE) tariff, the licence that covers the playing of music in pubs, bars and clubs.
Simmonds said:“We are extremely disappointed that PPL are proposing such eye-watering increases to their Specially Featured Entertainment (SFE) tariff which covers pubs, clubs and other venues that put on discos and DJ events for customers. The consultation proposes a possible 480% increase – from 3.8p per person per hour to 22p per person per hour. This would be on top of proposed structural changes that could more than double this figure, will simply not be viable for many licensees at a time when pubs are already facing major cost pressures in terms of increasing taxes and other regulatory costs. Whilst we welcome discussions on ensuring fairness and clarity in how the tariff is calculated and if improvements can be made to deliver this, we believe that these discussions must take place first and any impact considered further before there are proposals for cost increases.
She continued, “As PPL note in the consultation document, the SFE tariff is already increased annually by the Retail Price Index (RPI). Of course, RPI itself is now a discredited measure of inflation, but the use of this measure will have seen the SFE tariff increase by over 50% since 2003. This is compared to a 38% increase in the Consumer Price Index, the official measure of inflation, during this period. We are grateful for the dialogue and engagement we have had with PPL on this issue over the last year, but see no justification for further increases in the tariff at this time and we will be responding accordingly.”
In the consultation paper, PPL argues that the price hikes are justified because the current tariff is 30 years old and doesn’t treat all licensees the same way and that “aspects of the current tariff can be complicated and confusing to apply and so can lead to licensees (whether by accident or design) failing to report correctly under the tariff.”
Drinks firms and industry bodies have hit back at the UK Government after Chancellor Phillip Hammond announced an increase in duty rates on beer, cider, wine and spirits in today’s Budget.
According to several trade bodies, the inflationary increase will add around 2p of duty to the price of a pint, 8p to an average-sized bottle of wine, 28p to a bottle of vodka and 36p to a bottle of whisky.
Dire consequences
A number of trade bodies have warned this spells bad news for the industry, including The British Beer & Pub Association (BBPA), which has actively campaigned against a rise in beer duty.
Reacting to the Budget announcement, BBPA CEO Brigid Simmonds said, “When it comes to beer duty, a return to unpopular beer duty rises, with an extra 2p duty on a pint, is not good news for the British beer industry and in turn pubs.
“Business Rates, auto-enrolment of pensions, the national living and minimum wage, and the Apprenticeship Levy were already adding the equivalent of 5.3p in beer duty.
“Beer tax has now risen by 43% the past ten years. This latest rise will mean 4,000 fewer jobs this year, mostly in pubs. Tax rises on all alcohol will add £125m to the cost base of pubs.”
UK paying one of highest duty rates in Europe
Simmonds added that Britain’s beer taxes are now three times the EU average, and 13 times higher than those of the largest producer, Germany.
She continued, “If we are to compete in the future and as we move towards the challenges of Brexit, action must be taken on tax, to ease the burden on a beer and pub industry that supports around 900,000 UK jobs.”
Colin Valentine, national chairman of the Campaign for Real Ale (CAMRA), was equally disappointed with today’s announcement, which marked the first increase in beer duty in the UK for five years.
He said beer drinkers, pubs and brewers have been “let down by the chancellor’s decision to increase beer duty” and that the decision “completely ignores the pressures that are being faced by the beer and pub sectors.”
Valentine warned that “the rise in beer duty will ultimately hit consumers in their pockets and lead to pub closures across the country.”
He added, “The UK still pays one of the highest rates of duty across Europe, only consuming around 12% of the beer yet paying nearly 40% of all beer duty in the EU. Further beer duty increases will lead to unsustainable price increases in pubs.”
“Incredibly disappointing”
Dougal Sharp, founder & master brewer of Innis & Gunn, the UK’s second-biggest independent craft brewer, also voiced his disappointment.
Sharp said, “We welcomed the freeze in beer duty last year and we were hoping for a similar positive incentive from the Chancellor this time around.
“It is incredibly disappointing to see an increase in alcohol duty in the latest budget, consumers are going to be hit hardest by this rise and I fear for the impact it will have on pubs already facing enormous pressures.
“We’re in the middle of a beer boom in Scotland, with over 100 active breweries for the first time in over a century, and the government should be doing all that it can to support our industry.”
Excise duty increase on spirits a ‘major blow’
The Chancellor’s decision to increase excise duty on spirits by nearly 4% has also been described as a ‘major blow’ to the UK drinks industry.
The Wine and Spirit Trade Association (WSTA) reports the Budget will see 8p of duty added to a 75cl bottle of wine, 28p added to a 70cl bottle of 37.5% ABV vodka and 30p added to a 70cl bottle of 40% ABV gin.
The Scotch Whisky Association (SWA) added that the duty rise will add 36p to an average priced bottle of Scotch.
It has calculated that the overall tax on an average bottle of Scotch (excise duty and VAT) will comprise 79% of the total cost – 21% higher than in 2010, and that excise duty on a 70cl bottle will increase to £8.05, while the total tax will rise to £10.20.
Julie Hesketh-Laird, acting chief executive of the SWA, said, “A nearly 4% duty rise and a 79% tax burden on a bottle of whisky is a major blow, reversing recent progress.
“Distillers will find it hard to understand why the Chancellor is penalising a strategically important British industry with this tax increase.
“At a time when government should be supporting a key home-grown sector, we face a damaging tax rise on top of the uncertainties of Brexit.”
Calls for “fundamental review and reform” of alcohol duty system
Hesketh-Laird added, “Looking to the autumn Budget, we will be arguing strongly that it is time for a new approach to excise duty outside the constraints of EU excise law.
“The system is in need of a fundamental review and reform to make it fair and competitive.”
Charles Ireland, Managing Director, Diageo Great Britain agreed, adding, “It is staggering that the Prime Minister stood up in Scotland only on Friday and said that Scotch Whisky is “a truly great Scottish and British industry… and directly supports tens of thousands of jobs”, and just five days later her Chancellor hammers this industry at home.”
He added, “Tax on Scotch Whisky is now so high – nearly 80% of the price of an average bottle will go straight to the Government. We believe this duty rate increase will reduce total tax revenue.
“We are calling on the Government to reverse this punitive tax hike and fundamentally overhaul what is clearly a flawed excise duty system.”