Emma McClarkin, CEO of the British Beer and Pub Association, said: “Rachel Reeves’ plan to hike beer duty will be a bitter blow for our nation’s brewers, pubs and beer drinkers.
“After the Chancellor’s pre-election promise of a Five Point Plan for Pubs, it is impossible to see how this will be fulfilled if the price of a pint is increased by the Government.
“The cost of doing business has soared in recent years and, with potentially new punishing burdens, this tax increase is the last thing pubs and beer drinkers need. It makes it all the more vital that the Chancellor maintains the 75% business rates relief.
“Anything less will be a total betrayal of the great British pub that this government promised to protect, and the one million jobs that depend on them.”
NOTES TO EDITORS:
The BBPA has calculated the potential impact of a rise based on current duty on a 4.5% draught pint of 49p.
A 5% increase would take it to 51p and 10% to 54p.
If the duty is passed through in price by the brewer to the pub and then the publican to the customer (which will also add a bit of VAT) then the 12p margin would remain.
If the duty is passed through by the brewer but absorbed by the publican (so as not to impact demand having already had to put up prices in recent years) then the profit on a pint would drop to 10p and 7p.
Pubs make an average of just 12p on every pint of beer once taxes and costs have been deducted. You can find more stats here (please see page 9 for full breakdown and accredit the BBPA).
The BBPA is calling on the Government to use the upcoming Budget to cut beer duty, reform business rates, and pledge to keep the 75% business rates relief so that pubs and brewers can keep people in work and support more jobs.
Further stats on the beer and pub sector
According to latest Oxford Economics and BBPA figures, Britain’s beer and pub sector poured more than £34.4 billion in Gross Value Added (GVA) into the economy and contributed more than £17.4 billion in tax in just one year.
The same research found that the beer and pub sector supports 1,040,000 jobs – an increase of more than 100,000 prior to Covid.
According to the latest Localis think tank report, eight out of 10 believe pubs bring people together, and three in four say their local battles loneliness in their community.
Should you need anything further then please do let us know. You can reach us on 020 7627 9199 or on press@beerandpub.com.
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