The CEO of the British Beer and Pub Association Emma McClarkin has predicted that 2025 is going to be “a challenging year” for the sector due to mounting cost pressures, noting the following 12 months are likely to prove a “batten down the hatches moment.”

Emma McClarkin has warned that 2025 could be a “batten down the hatches moment” for  the UK pub and brewing sector, as rising employment costs, uncertainty over reform, prohibitive taxes and EPR legislation combine to create a tough trading environment.

Speaking to the Morning Advertiser, the CEO of the BBPA observed that the sector is already one of the highest taxed in the country, adding “we already pay £17bn in wages… knowing that’s going to increase again is really frustrating.”

“I hate to say it, but I think 2025 is again going to be a challenging year,” McClarkin told the Morning Advertiser. “Businesses are under an extreme amount of pressure because they’ve already had to review their business model five, six, seven, eight times over the past five years since the pandemic but I think 2025 is a batten down the hatches moment.”

“It’s not through us not trying hard or the consumers not wanting to be there, it’s the onslaught of rising costs from the Government that are really going to bite business.”

With measures introduced in the Autumn Budget set to add £650m to the sector’s annual bills as of April, McClarkin warned businesses will be forced to halt investment, and urged “a staggering of the cost increases.”

“People are very nervous. They’re having to divert their investment into other areas. This Labour Government was supposed to be all about growth and investing, but I don’t know how we’re going to see that transpire with the environment they have set out this year.”