This government is for turning
Simon Turton, editorial director of Hand Crafted Drinks Magazine, examines the likely benefits the government’s amended net zero commitments will have on the drinks and leisure sectors.
The government’s green agenda U-turn is likely to be welcomed by businesses across the country, whether its drinks manufacturers or leisure and hospitality venues.
Whilst the aim of reducing the country’s CO2 emissions is a worthy ambition, they must be set in the context of global emissions. The UK produces less than 1% of all CO2 emissions, which in comparison of other countries is relatively low. Earlier this year it was reported by The Daily Telegraph that China produced the same amount of pollution in eight years that the UK produced in 220 years, since the start of the industrial revolution.
This change of policy will no doubt ease the the cost of living crisis, which has seen inflation hit near-record levels (which is now starting to fall back) the result of increased energy and food costs, has impacted on the spending habits of consumers.
We can’t make a direct comparison between the number of pubs that are closing (over 380 in the first six months of the year) and the cost of living pressures, but consumers have tightened their belts and this will have had an impact with the on-trade.
The cost of living pressure has also affected the hand-crafted and artisan drinks sector, as customers choose cheaper or more mainstream alternatives. 45 craft breweries have closed this year and there has been a rise in the number of artisan distilleries that have ceased trading.
Whilst the government has been listening to the public, there has been no such volte face in London — Sadiq Khan, the London Mayor, has pushed ahead with the ULEZ expansion, which by all accounts is having a disproportionate impact on lower income households, who can neither afford to buy a compliant vehicle or pay the £12.50 daily charge.
Again, such measures will have a negative impact on the spending power of those being affected with such costs — adding to the cost of living crisis. Rather than going out for a meal or a drink, they will simply stay at home. Multiply this affect by tens of thousands of people and suddenly millions are pounds are no longer being spent in the wider economy.
In the last few years, drinks producers and hospitality operators were disproportionally negatively impacted by the Covid-19 lockdowns, leading to hundreds of businesses closing down.
Just when businesses were getting back on their feet there was — and still is — the cost of living pressures, which has also led to many companies going out of business.
The relaxing of the government’s net zero ambitions, which has been criticised by some, is going to help businesses across the country and this has to be welcomed. I, for one, shall certainly be raising a glass of a fine, hand-crafted British ale to toast this much-needed policy amendment.
