Beer garden smoking ban would be 'devastating' for pubs, trade body warns Keir Starmer

Yorkshire and Humber’s beer and pub sector gave the region’s economy a £2.5bn economic boost while also contributing over £1.7bn in tax, according to new research commissioned by a trade body.
The British Beer and Pub Association said despite the figures, pubs only make an average of 12p a pint once their taxes and costs are deducted.

The organisation said the findings underline the need for Government support for the industry and urged Labour not to go through with a potential ban on smoking in pub gardens.

The BBPA said that as a whole, Britain’s beer and pub sector poured more than £34.3 billion in Gross Value Added (GVA) into the economy and contributed more than £17.4 billion in tax in just one year, according to new research by the trade body. 

The figures follow the BBPA commissioning Oxford Economics to assess the sector's economic impact. The full findings will be published in the coming weeks.

But the BBPA said direct activities in pubs and breweries generated £15.5 billion in Gross Value Added to the economy, a further £8.3 billion came from supply chain activities such as production and supply of raw materials, and another £10.6 billion came from induced impacts of those directly employed and employed in the supply chain spending a proportion of their wages.   

The BBPA is arguing for a cut in beer duty, business rates reform, and a pledge to keep the 75 per cent business rates relief to ensure that pubs can survive.  

Emma McClarkin, CEO of the BBPA, said: “The Yorkshire & Humber sector’s growth will underpin economic growth, which is why if the Government truly is business-friendly, it must recognise that pubs and brewers are shouldering multiple taxes and costs that are squashing growth and could lead to businesses failing.   

“There is no more meat on the bone to cut, which is why it we are calling on the Government reduces the cost of doing business so we can continue to make a massive contribution to the public purse.  

“It is imperative there is a reform in the business rates system which currently penalises bricks and mortar businesses like pubs which pay five times more than their share of turnover.  

“Until then, the vital 75 per cent business rates relief due must be maintained for pubs so that one of the core cost components of doing business can be controlled.

"In addition, we urgently need to see a cut in beer duty.   

“Our industry is an economic bellwether and when pubs and brewers suffer, the economy suffers. If the Government wants to succeed in its growth mission, it needs to support our beer and pubs which play such a vital role in our communities.” 

The BBPA said that a proposed smoking ban in beer gardens “would have a devastating impact on many pubs and affect their viability as businesses”. 

A spokesperson said: “The BBPA is urging Government to reconsider this misguided restriction.” 

Prime Minister Sir Keir Starmer has said the Government will “take decisions” on smoking.