Emma McClarkin, CEO of the British Beer and Pub Association, said: “British brewers and pubs pour billions into the economy, support more than a million jobs, and are at the heart of communities.
“Whilst we welcome the Government’s acknowledgement of the sector and the cut to draught beer in the last Budget, we need to see further cuts in beer duty to get close to the European average.
“We pay far more than our European neighbours, with the UK paying 12 times more duty than Spain and Germany. Indeed, the increase in packaged beer is a step the other way and another burden our sector will have to shoulder.
“Following the wider Budget announcements, pubs and brewers now face an April cliff edge, when a further £650m extra in costs will begin.
“This includes the reduction of vital business rates relief, staggering new employer costs, and the beer bottle packaging tax, all which will stifle growth and investment.
“We urge Government to quickly introduce meaningful business rates reform and phase in new costs so that pubs can thrive and our sector help deliver growth.”
ENDS
NOTES TO EDITORS:
The UK pays the second-highest duty rate in Europe, with Finland taking first place. The UK pays 12 times more than Spain and Germany.
For a breakdown of how UK beer duty compares to other European countries please see our stats and graph here.
In the Alcohol Duty Review in August 2023, drinks of 3.4% ABV and lower were subjected to lower tax, along with a new draught relief to support pubs.
This led to brewers investing in, and producing, lower strength products and pubs serving these up to customers. This shift in sales resulted in the removal of 100 million alcohol units in just one year.
The reduction of alcohol units is further evidence of the important role industry can play to support public health aims. This follows recent statistics from think tank Localis, supported by the BBPA, which revealed that eight out of ten Brits believe pubs bring people together, and three in four say their local battles loneliness. More information can be found here.
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