Harrogate indie brewery in warning that 'even successful beer businesses have a battle on their hands'

In a show of solidarity by independent brewers facing a crisis of survival for the pubs and hospitality sector, an open letter to Rachel Reeves has been signed unanimously by all 28 Regional Directors of the Society of Independent Brewers and Associates (SIBA).

Among those is Ian Fozard, the experienced co-owner of the award-winning Rooster’s Brewery at Hornbeam Park in Harrogate.

A pioneer in the independent brewery and pub sector for 30 years, Mr Fozard has seen and done it all but has rarely been more worried.

"Rooster’s is a successful business; our fantastic Taproom is very popular, but, in this environment, we are facing major challenges caused by the decline of pubs, ever-increasing costs and customers not spending,” he said.

"Consumer confidence is low, people’s going out habits have changed and the late night economy has gone.

"Where are the policies from the Government to encourage people to go out and spend in the hospitality sector?

"The way business rates operate based on assumptions of a business’s turnover has been causing a massive headache for pubs and is unfair compared to other businesses.

"Everyone has been pressing for reform but, even though they are coming down in theory, which is welcome, the way the Government has re-evaluated rateable values means rates will actually go up for our sector.

"We have enjoyed rates relief since the Covid period but that has been steadily reduced and will disappear next April.

"If pubs are struggling, the people who supply them by definition are also struggling.

"The rise in the minimum wage and the living wage will also have the consequence of deterring small businesses from giving jobs to young people."

Like his co-signees, Mr Fozard believes that the Chancellor’s policies, while advertised as an attempt to support breweries and pubs which support one million jobs and pay £18bn in taxes each year, will, in reality, make the job of prospering a lot more difficult.

SIBA argues that, with pub closures in the UK at a new high and having lost more than 100 breweries in the past year, the Chancellor has let the beer industry down, no matter her intention.

The main points of the SIBA open letter included:

"We were optimistic of your pledges to reform business rates to help address the iniquitous tax imbalance between traditional business and online tech giants.

"As a percentage of turnover we pay tax at four times that of those global businesses which has always struck us as deeply unfair.

"While we were disappointed that you didn’t take the opportunity in your Budget to lower duty on draught beer sold in pubs, the sector were initially heartened by your announcement of increased support on business rates and to make the hospitality relief permanent.

"However, once the revaluations are taken into account and the transitional relief unwinds, pubs will now typically pay 76% more in business rates whilst online tech giants only pay 16% more.

"These changes to business rates could be the difference between closure and survival for businesses that operate as the beating heart of communities and bring people together when society needs it most.”