Supporting hospitality

GOVERNMENT SUPPORT MEASURES MUST BE MAINTAINED, EXTENDED OR PUT INTO PLACE FOR HOSPITALITY ESTABLISHMENTS AND THEIR WIDER ECOSYSTEM

These measures are crucial if businesses are to survive the current curtailment of their ability to operate profitably as economically viable businesses and to prevent their definitive closure.

This will support not only hospitality but other businesses throughout the beer value chain, due to their interconnectivity and mutual dependence.

PROLONGED TEMPORARY UNEMPLOYMENT SCHEMES

Temporary unemployment schemes such as furlough need to be prolonged during closures and throughout any period of partial reopening, to allow staff to then return upon the reopening of businesses and as customers progressively start to return.

    LOANS & GRANTS

    Flexible liquidity loans and grants, including state aid, can help provide cashflow to allow companies to fulfil financial obligations whilst income is often zero during lockdown and potentially still very minimal during partial reopening and as consumer confidence slowly returns.

    EXCISE TAX

    Excise recovery schemes can once again help prevent taxes being paid on beer that is ultimately unconsumed. Targeted excise reductions can help sectors such as brewing that are disproportionately impacted by the hospitality sector shutdown.

    VAT

    The extension or introduction of reduced VAT rates, often specifically targeted at the hospitality sector and including beer, are critical to supporting reopening and helping the return of customers to bars, pubs, restaurants and cafés once the doors reopen.

    THE CAPACITY FOR THE BREWING AND HOSPITALITY SECTORS TO KICKSTART THE WIDER ECONOMY MUST NOT BE COMPROMISED

    With low consumer confidence and social distancing measures, the recovery will be fragile and further support measures are still needed.

    Governments must not introduce new taxes on sectors that suffered the most and have the most potential to recover and kickstart the wider economy.

    Raising indirect tax rates, such as excise, on the sectors whose recovery will help once again generate jobs, revenues and value, would be counter-productive.

    We are calling for an inclusive tax policy, taking into consideration the changes in consumer purchasing behaviour provoked by the shutdown of other parts of the economy, reflecting a reality that some parts of the economy have otherwise thrived under the new circumstances.

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