- Proposed estimated fees could cost up to an extra £212m per year
- Business leaders warn this could be passed on to customers and, for some, could mean the end of their bottled beer
- Industry warns government to avoid punishing consumers and industry
The beer and pub sector has warned the Government that a new tax on beer bottles could lead to customers bearing soaring new costs.
Industry leaders have written to the Secretary of State for the Environment, Rt Hon Steve Reed MP, to urge a review of these regulations and to sound the alarm around possible unforeseen consequences for brewers, for pubs and for customers.
The British Beer and Pub Association (BBPA), Independent Family Brewers of Britain (IFBB), Campaign for Real Ale (CAMRA), and Society of Independent Brewers and Associates (SIBA), spoke up on behalf of their members, who collectively contribute billions to the UK economy.
The proposed new fees will add “eye-watering” additional costs that brewers will be expected to bear from next year, they warned.
Emma McClarkin, CEO of British Beer and Pub Association, said: “Our sector has ambitious net zero targets and is committed to a circular economy and working together to achieve this in a sustainable manner.
“However, these suggested fees pose a serious risk of business failure and will could lead to extra cost for the customer, strangle investment and growth which means less jobs, and lead some to make heartbreaking decisions about whether they can keep making their beer.
“It is critical that Government takes a step back to consider the devastating impact this could have on our industry, which plays a vital role for the UK’s economy and employment.
“We urge them to review these fees and make them fairer and more sustainable, so we can continue to do business.”
In a letter to the Government, trade associations advised that for 330ml glass bottles, the figures published will add between 3p and 7p on each of the 3.2 billion bottles of beer sold in the UK each year, a cost of up to £212m and with a midpoint estimate of £167 million. For heavier 500ml bottles, in which most premium bottled ale is sold, the costs could be up to 9p per bottle.
This is the equivalent of a 8-21% beer duty increase on these products and, like beer duty, which is set to rise again in February, will inevitably lead to price increases for consumers and fuel inflation.
Industry leaders warned that the cumulative impact of the proposed fees could see the end of many of Britain’s much loved bottled ales, dramatically reducing choice and more than wiping out any profit brewers were hoping to achieve in already extremely challenging times.
Richard Bradbury, Managing Director of Theakston, said: “We understand the desire to tackle unnecessary packaging waste but the scale of charges, particularly on glass and the current plans for implementation could force out our Old Peculier beer and similar brands of the bottled beer market.
“The glass we use is manufactured in the UK, has a high recycled content and is then itself far more likely to be recycled through a bottle bank than end up in landfill. We urge DEFRA to take a pause and take the time to work with Britain’s traditional ale breweries to find a better and more affordable solution to a problem that we don’t really think is of our making.”
Nick Mackenzie, Greene King CEO, said: “We are committed to playing our part in supporting a more sustainable and circular economy, however these new glass fees would contribute to significantly higher costs for brewers and so it is vital that a solution is found to protect hundreds of years of brewing heritage and maintain choice for customers. With the budget coming on 30 October it is more important than ever to look at how the government can reduce the extremely high costs of doing business for the UK’s pub and brewing sector.”
ENDS
Notes to Editors: For more information contact the BBPA press office on 020 7627 9199/ press@beerandpub.com
About the BBPA: We are the UK’s leading trade association representing pubs and breweries. Our members brew over 90% of British beer and own over 20,000 pubs. We are the voice of pubs and brewers, offering insight and policy thinking to government, political stakeholders and media alike to help ensure that there is an in-depth understanding of both the opportunities and challenges faced by the sector and the policy solutions to bring about the optimal fiscal and policy framework that will underpin a thriving pub and brewing sector in the UK.
For more information contact the BBPA press office on 020 7627 9199/ press@beerandpub.com
Third-party news items that are posted on the Guild website’s news section come from press releases received by the Guild. These press releases are posted as they have been received and their publication on the Guild website is intended as an informational service provided to our members and website visitors. As such, the publication of a story from a third-party source is neither an endorsement of the content, nor its sender, by the Guild. For enquiries on any news item, please use the contact details that can be found at the bottom of each post.