Soaring costs, the impact of changes to employer National Insurance Contributions and the urgent need for business rates reform in Wales were key issues discussed at a Welsh brewery visit by Tonia Antoniazzi MP, the Chair of the Parliamentary Beer Group, with UKHospitality Cymru.
The Gower MP heard about the Gower Brewery success story and its current ambitions for further expansion, but also how rising costs were impacting on plans across the business.
“We now employ 38 people in total and the employer National Insurance Contributions rise in particular will have a big impact here,” said Richard Lewis, Head of Sales at Gower Brewery.
“We are seeing local pubs close because of costs and I can see that worrying trend continuing when the two increases, NICs and National Living Wage, impact later in the year.
“Business rates reform would help the industry right across Wales and we urge Welsh Government to use its new powers and back the sector.”
Ms Antoniazzi was shown how the brewery, at Crofty Industrial Estate, Penclawdd, sets itself the highest possible quality standards and told it has increased its sales base in recent years to put bottles into most supermarkets and a UK-wide pub chain.
“We currently produce around 1.2m pints a year here, an increase of 7.5% on 2023, and we bucked the market trends by selling more beer during the summer than winter,” Richard said.
“This is an exemplary business and community asset and, with our local pub network, provides valuable local jobs across the constituency,” said Ms Antoniazzi.
“I’ve assured Richard and his team that as their local MP and as Chair of the Parliamentary Beer Group, I’ll report back to Government on Gower Brewery’s success story, their local significance and their costs concerns.”
David Chapman, Executive Director of UKHospitality Cymru, said: “It was fantastic to welcome Tonia to the Gower Brewery and show her exactly what hospitality businesses in Wales are contributing to the economy and their local communities.
“It was good to be part of robust conversations about the challenges facing the sector, as well as the growth potential of hospitality, and I’m pleased Tonia will be taking that back to the Government.”
