Welsh beer and pub sector generates over £1.5 billion
Wales’ beer and pub sector pours more than £1.5 billion into the national economy and supports more than 68,000 across jobs across Wales, but is at risk from punishing costs, the Welsh Beer and Pub Association has warned.
The leading trade association’s inaugural The State of the Nation 2025 report says pubs are fundamental for local jobs, tourism, and bolstering rural communities.
However, the WBPA warned at the report’s launch at the Senedd yesterday (Wednesday, 22 January) that, despite its vital role, ongoing and considerable pressures have placed the sector’s viability at real risk.
Currently, Wales continues to experience higher pub closures than the rest of the UK, with 6.5% of pubs closing between 2018 and 2023, compared to 4.6% in England and 3.9% in Scotland.
Lower business rates relief compared to their English counterparts further exacerbated financial pressures, leaving Welsh pubs an average of £6,000 worse off this year.
While there was a slight deceleration in closure rates in 2024, the upcoming rise in National Minimum Wage and National Insurance Contributions could cost the sector more than £650 million, putting further strain on its recovery.
The WBPA says Senedd support is essential if the sector is to continue boosting the country’s coffers and remain the backbone of the job market.
The WBPA is calling for a reduction in soaring costs of doing business. They call on the Senedd to swiftly introduce meaningful and permanent business rates reform to provide certainty for pubs, support the phasing of new employment costs commencing in April and for lowering beer duty to the EU average.
Emma McClarkin, CEO of the WBPA, said:
“The beer and pub sector is a vital Welsh industry that so many people’s livelihoods depend upon. It’s critically important both economically and socially and provides so many jobs for young adults and those seeking flexible work.
“Our industry pours more than a billion into the economy and is crucial for jobs, the community, and tourism, but with pubs making an average of just 12p a pint thanks to the huge cost of doing business, it is in a fragile state.
“If the Senedd backs the industry then our sector and its fantastic workforce can continue to boost the economy, employ more people, and remain at the heart of communities in Wales.”
The WBPA is calling on the Senedd to collaborate with the sector to deliver a truly circular economy that the industry is committed to. This must seek to minimise the additional costs and complexities for Welsh pubs and brewers, allowing to adjust operations, supply products across the UK, and plan financially.
Nick Payne, Chairman of the WBPA and MD of S.A. Brains, said: “Our sector has a distinct history, character, and culture that sets it apart from the rest of the UK. Over the last decade, we have seen a blossoming of local breweries across Wales, and the past year has witnessed a slowing down in the number of pub closures.
“However, we can’t ignore the fact that margins are still slim and being squeezed further. Many operators are struggling to manage the increasing cost of doing business, and the national economic outlook remains challenging.
“We need policymakers and politicians, here in Cardiff Bay and across the border in Westminster, to take a second look at the policies they are drafting, especially the cumulative impact of these policies, and work with us to put in place the regulatory and economic frameworks that will ensure our breweries and pubs remain the heart of their local communities and economies.”
- Categories: Alcohol/Ent/LNR, Trade/industry, Wales
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