BBPA calls for beer tax break

Tax hikes are emptying pubs, says BBPA

Trade body in pre-budget plea

The British government has been urged to throw a lifeline to the country’s imperilled pub trade by freezing beer duties in next month’s budget.

Beer should be placed in a lower tax bracket to reflect its lower alcoholic strength and plans to up duties by 2% above the rate of inflation next month should be axed, according to the British Beer and Pub Association (BBPA). Last year similar calls from the body were ignored by the government.

“It’s time for the chancellor to recognise the social, community and economic value of low-strength drink like beer and social drinking in pubs,” said the trade body’s CEO Brigid Simmonds.

Relief for British beer would help safeguard 400,000 jobs in the country’s brewing and pub sectors, hit hard by tax increases totalling 20% in the past two years, according to the BBPA.

The association made the calls in its submission to the Treasury prior to next month’s budget, claiming that a freeze in duties will save 12,000 jobs in the next 12 months.

In the past year sales revenue from beer has slumped by £650 million and five pubs are closing every day, according to the BBPA. In real terms beer duty has risen by 14% since 1997, while duty on spirits has fallen by 20%, said the BBPA.

Simmonds added: “By treating beer differently in duty rates we can support a home-grown industry and safeguard thousands of jobs. It’s time to give beer a break and show that the government is serious about backing the British pub.”

The BBPA said support for its Back the Pub campaign is growing with 100,000 members of the public, including 183 parliamentary candidates, backing the movement, which replaced the body’s failed Axe the Tax campaign last year.