Pubs could be forced to push up prices, BBPA warns
The BBPA is calling on the Government to reconsider the timing of the new employment costs so businesses can better plan and carry on employing staff they need, rather than staff they can afford
Pubs may have to make difficult decisions to save jobs including push up prices following the Budget announcement, the British Beer and Pub Association (BBPA) has warned.
The British Beer and Pub Association’s figures show that the Budget’s rise in National Insurance Contributions means, at a conservative estimate, a £500m increase to the cost of doing business for the industry and risks jobs.
The BBPA is calling on the Government to reconsider the timing of the new employment costs so businesses can better plan and carry on employing staff they need, rather than staff they can afford.
The announcement comes as figures from the 2024 Oxford Economics research revealed that more than half (51%) of the overall pub sector’s workforce were aged 16 to 24. That equates to pubs employing 1 in 10 of all under 25-year-olds in the UK job market.
The data, commissioned by the BBPA, shows that pubs employ 350,000 under 25-year-olds, up from 281,770 in 2019 – a dramatic increase of nearly a quarter (24%). This equates to 1 in ten of all under 25s in work.
Prior to the Budget, the National Insurance Contributions for 350,000 under 25-year-olds was equal to approximately £82m. With the new NICs announced in the Budget, this will now cost a staggering £153m to maintain the same amount of under 25-year-old workers.
The East of England (66%) had the greatest proportion of 16 to 24-year-olds employed in the sector.
The sector, which is millions of people’s first step on the career ladder, provides significant employment opportunities for young people and those seeking flexible work, the BBPA said.
Emma McClarkin, CEO of the British Beer and Pub Association, said: “We know the Government acknowledged our industry, but they must be clear-eyed about the shattering effect new regulations will have on us. Many will have worked behind a bar and know that it’s more than just a job. Our industry provides rewarding careers, helps younger people build skills, grow in confidence, and fund university education or driving lessons. Without this vital work many would struggle with rents, bills, and basic living.
“If we’re to keep people in work and put money in their pockets, business needs to be viable. We urge the Government to reconsider the timings of the new employment costs and swiftly deliver meaningful business rate reforms. Only then can we continue to be the backbone of the UK job market and a cornerstone of the community.”
