Reacting to the Spring Budget, Emma McClarkin, Chief Executive of the British Beer and Pub Association said:
“This Budget was a make or break moment for pubs and brewers who have been running out of road for too long, and whilst the Chancellor’s efforts to support our pubs and breweries are welcome, we look forward to seeing how the “Brexit Pubs Guarantee” will deliver for our sector.
“The cut to draught duty as part of the alcohol duty reform is positive and we hope that it will result in a boost for our pubs this summer.
“However, the fact is, our industry will be facing an overall tax hike not a reduction come August. Duty on non-draught beer will rise and the measures introduced today won’t rebalance the catastrophic impact soaring inflation and unfair energy contracts are having on both pubs and the breweries that supply them.
“As the 1st of April rapidly approaches, businesses are also nervously awaiting what’s next for their energy costs, and a lack of support in today’s announcement will have a direct impact on their ability to keep their lights on and doors open.
“We need the Chancellor to unlock growth opportunities for businesses of all shapes and sizes. We look forward to seeing how his measures on investment, people and skills will lay the foundations to allow our pubs and breweries to continue to create jobs and help regenerate local economies in every part of the country.
“The Chancellor highlighted how our pubs are the most treasured community institution, and we appreciate his efforts to provide some relief, but a lack of immediate support in today’s Budget will still put the future of many of them at risk.
“Having recognised the importance of our pubs and brewers, we look forward to working with the Government to resolve the fundamental issues holding our pubs and breweries back, including reforming business rates and reducing the unfair tax burden on our sector.
“It is still tough out there for our pubs and breweries and so we’re encouraging people to get out and support their much-loved locals.”
ENDS
For more information or to arrange an interview contact Jessie Powell at jpowell@beerandpub.com / 020 7627 9199
Notes to editors:
Key facts & figures:
- Overall, duty will go up by £220million across the sector
- £1 in every £3 spent in a pub is currently paid back to the Treasury in tax
- Beer duty is a particularly regressive form of taxation, with the 10% of households on the lowest income paying the highest proportion of their income on beer duty (over 1%)
- The UK has one of the highest beer duty rates in Europe – British beer duty is 12x more than Germany’s
- 7 in every 10 drinks sold in a pub is a beer
- New duty rates will come into force from August 2023
- Between 2021-2022 average costs for pubs and brewers rose by 22%
- Between 2021-2022 the average price of a pint rose 8%, the highest yearly increase for 20 years – current average price of a pint from ONS
- The UK’s beer and pub industry supports close to 940,000 jobs
- The industry adds £26.2billion to the UK’s economy each year
Polling conducted in February 2023 showed:
- 69% believe local pubs play an important role in bringing communities together
- 67% of the nation believe local pubs play an important role in creating jobs
- 42% agree that closure of their local pub would devastate their community
About the British Beer & Pub Association
The BBPA represents UK companies which between them brew over 90% of the beer sold in the UK and own 20,000 pubs.
Our members include international companies, national and local brewers and pub businesses operating managed and tenanted pubs in cities, towns and villages across the country.
These businesses are at the heart of communities and local economies and include family businesses who have been brewing beer and running pubs for hundreds of years alongside emerging brewers and pub operators.
Press release from the BBPA.
For more information or to arrange an interview contact Jessie Powell at jpowell@beerandpub.com / 020 7627 9199.