Now is the time to back Welsh pubs to kickstart the Welsh economy

Nick Payne

Welsh pubs are crucial to our communities and our way of life. I see that every day, whether it’s through bringing people together in the hope that our national teams will produce a bit of magic, providing a place where we can engage our brains at the weekly pub quiz, or more simply existing as a reassuring constant where we see friendly faces in a welcoming environment.

These community spaces are part of our history, our story as a nation, and in Wales alone, the wellbeing value attributed to pubs is £1.4 billion each year. It’s why I’ve just reopened the iconic Old Brewery as a pub in Cardiff’s Brewery Quarter and it’s also why, in my role as President of the Welsh Beer and Pub Association, I am reaching out to the Welsh Government to say now is the time we can leverage the potential of the pub to kick start the Welsh economy.

Brains began brewing at the Old Brewery in 1882. It is a heritage we are deeply proud of, and one that has shaped the success of our business for more than 140 years. Over those years, businesses across the industry have experienced ups and downs. More recent times have, unfortunately, been characterised by the challenges. We see this through devastating stats showing a pub closing every single day across the UK and the impact this has on the communities that rely on them. However, despite this concerning backdrop, I am optimistic about the path forward.

This optimism is why we’re making bold investment decisions, but we need to see our positivity matched by ambition from Government which will create the environment for growth and further investment from across the sector.

While this investment reinforces our commitment to Wales, confidence in the future of the brewing and pubs sector cannot be taken for granted.

Welsh pubs and brewers continue to face significant cost pressures which, if left unchecked, risk undermining the sector’s ability to invest and, also, to play an important part in tackling the NEETs crisis. Around 50% of our employees are under 25s. That places us in a unique position to be part of the economic solution for Wales.

Right now, we stand at a fork in the road. With confidence and support, we can build a thriving industry with far reaching benefits to communities across Wales. Alternatively, if we accept the current settlement, the ability for many pubs to keep their doors open remains under threat, risking jobs and the future of communities.

One key example of where we face issues is on business rates. I was delighted to see the First Minister and the Finance Minister pouring pints as they recently announced support through a permanent 30% business rates cut for properties with a rateable value under £51,000. This will, undoubtedly, help.

However, the reality is that pubs in Wales will still face a higher business rates burden than pubs operating across the border in England. In the first year, this will see the average Welsh pub paying over £6,400 more than their English counterparts.

I have no doubt that this is an unintended outcome, but the support on business rates announced in the UK Budget will mean that the Barnett consequential coming down the track will allow the Welsh Government to go further.

If our sector is to thrive, it is vital that this disparity is addressed. If the costs of operating or investing in pubs in Wales are consistently higher, it will inevitably become a factor for businesses when deciding where and when to invest next.

Let’s be ambitious! Let’s give our sector the space to be part of a Welsh economic success story. We stand ready to work with the Welsh Government to use the forthcoming Welsh Budget to go further and pass on, in full, the funding received from the UK Government to support and sustain the Welsh brewing and pub sector.

Business rates are a big part of the story for us, but let’s also consider the wider impact on high streets and town centres right across Wales, where pubs form the beating heart of their communities. By creating the conditions which allow us to generate employment opportunities, helping young people get their foot on the career ladder and learning crucial skills that they will carry with them, we will also be securing the backbone of Welsh communities and ensuring that we do not lose a core part of Welsh identity.

That is why it is so important that we level the playing field between pubs on either side of the border and use this as a platform to explore how else we can use brewers and pubs to kickstart the Welsh economy.

Nick Payne is MD of SA Brain and President of the WBPA

---

Get more trusted Welsh news

Choose Nation.Cymru as a preferred source in Google News to see more of our journalism.