UK: Beer and pub trade calls for lower tax

The BBPA said such a move would help support British pubs and brewing, with 400,000 UK jobs depending directly on the production and sale of beer. The proposal is contained within the BBPA’s submission to the Treasury in advance of the March Budget. As a first step, the Government should freeze tax on beer in the forthcoming budget.

Duty rates on beer have increased by 20 per cent since March 2008 – raising the industry’s tax bill by £600 million during one of the harshest ever recessions. The Government has stated that it plans a further increase in March of 2 per cent above inflation.

The submission is also being sent to the Government’s new working party on pubs led by John Healey MP.

The submission states:

• Pubs are closing at an unprecedented rate, accelerating from two per week in 2005, to more than five every day. Sales of beer are down £650 million in the last year.

• Beer duty has increased by 14 per cent in real terms since 1997, while duty on spirits has fallen by 20 per cent.

• A duty freeze in the forthcoming budget would save 7,500 jobs in the next 12 months.

• Seven in ten people (71 per cent) think the tax on a pint of beer is already too high.

Brigid Simmonds, chief executive of the British Beer & Pub Association said: “It’s time for the Chancellor to recognise the social, community and economic value of a low strength drink like beer and social drinking in pubs. The appointment of John Healey as Minister for Pubs is a welcome sign that the Government is listening to public concerns about beer tax and pub closures.

“Pubs are at the heart of our community and make a significant contribution to our economy. Beer is an iconic British drink, yet the impact of blunt duty increases has further hit our ability to generate economic activity to help pull Britain out of recession.

“By treating beer differently in duty rates we can support a home grown industry and safeguard thousands of jobs.

“It is time to give beer a break and show that the Government is serious about backing the British pub.”

The submission comes on the back of new figures which show that public support for the Back the Pub campaign exceeds 100,000 with 163 parliamentary candidates from all parties backing the campaign.

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