Eight leading bodies representing the entire supply chain in Britain’s beer and pub industry have written to the Chancellor calling for decisive action to ease the burden of both Beer Duty and business rates in the Budget on 22rdNovember – to protect jobs, pubs, and the wider economy.
Britain’s growers, brewers, pubs, and pubgoers want the Government to extend and increase the pub-specific rates relief introduced this March, beyond this year and set out the timetable for major reform of the system. And on Beer Duty, they are calling for at least a freeze for the entire duration of this Parliament.
Pubs and brewing support 900,000 jobs and contribute £23 billion to the UK economy, the letter says. However, many pubs are facing huge business rates rises following the 2017 revaluation. Pubs pay five times more in business rates than their share of rateable business turnover while online businesses face a much more benign tax environment. Transitional relief helps, but tapers off and there are further planned increases over the coming years.
When it comes to beer, already, one pound in every three spent in the pub goes to the Exchequer. For Britain’s brewers, up to half their turnover is excise duty. The 3.9% Beer Duty increase in March was a major blow, severely undermining fragile sector confidence. Further planned Beer Duty increases will result in thousands of job losses throughout the UK, the group argues, and put at risk new investment in British brewing and pubs.
In calling for action on both these burdensome taxes, the letter concludes:
“These measures will create thousands of additional jobs, boost inward investment, tourism and export growth, and ensure a pint in the pub remains an affordable pleasure, bringing together people from all walks of life.
We are therefore urging the Chancellor to:
- extend and increase the pub-specific rates relief beyond this year and set out the timetable for major reform of the system.
- Implement at least a freeze in Beer Duty for the duration of the Parliament”
ENDS
For further information
Neil Williams, BBPA, 020 7627 9256/07974 249779
CAMRA Press Office: press@camra.org.uk / 01727 337 863
Chris Banks, ALMR, 020 8579 2080
Joint letter signed by:
Brigid Simmonds OBE, Chief Executive, British Beer & Pub Association
Colin Valentine, Chairman, Campaign for Real Ale
Kate Nichols, Chief Executive, Association of Licensed Multiple Retailers
Mike Clist, Chief Executive, British Institute of Innkeeping
Mike Benner, Managing Director, Society of Independent Brewers
John Longden OBE, Chief Executive, Pub is the Hub
Julian South, Executive Director, Maltsters Association of Great Britain
Geoff Thompson MBE, Chairman, British Hop Association
Notes to editors:
BBPA: The British Beer & Pub Association is the leading body representing Britain’s brewers and pub companies. The Association is more than a century old and was originally founded as the Brewers’ Society in 1904. Our members account for some 90 per cent of beer brewed in Britain today, and own around 20,000 of the nation’s pubs.
CAMRA: CAMRA, the Campaign for Real Ale, is a not-for-profit consumer group with nearly 190,000 members that has been operating since 1971. Our vision is to have quality real ale and thriving pubs in every community.
ALMR: The ALMR is the only trade body dedicated to representing the interests of licensed hospitality retailers in the UK. We are the leading voice campaigning on behalf of the licensed retail sector, engaging with Government on a national level to fight for the issues that matter the most to our members.
BII: The BII supports its members throughout their careers with a wide range of valuable member benefits including; events, newsletters, business magazine, mentoring service, helplines offering advice on HR, legal, licensing, debt and general business issues as well as numerous other benefits designed to specifically meet the business needs of the individual members.
SIBA: SIBA, the Society of Independent Brewers, was established in 1980 to represent the interests of the growing number of independent breweries in Britain. SIBA currently represents more than 850 independent craft breweries and our vision is ‘to deliver the future of British beer and become the voice of British brewing.’
British Hop Association: The British Hop Association was formed by British Hop Growers in 1996 to ensure that the industry had a coordinated approach to its activities and in particular the research and development of new hop varieties through its subsidiary Wye Hops. In 1998 there were 13 commercially-grown British hop varieties, today there are 31.
MAGB: Created by The Maltsters’ Association of Great Britain, more commonly known by the abbreviation MAGB. We are the trade association of the UK malting industry, and represent over 98% of UK malt production.
Pub is the Hub: Inspired by His Royal Highness The Prince of Wales in 2001, Pub is The Hub operates as a ‘not-for-profit’ organisation dedicated to improving community services and activities. We offer advice and support to communities who are looking to relocate, re-open or introduce vital services and activities in their local pub, as well as to communities considering the options for acquiring their local pub and the range of responsibilities involved.
The full text of the letter follows below:
Dear Chancellor,
2017 AUTUMN BUDGET: FAIRER TAXES FOR PUB GOERS, PUBS AND BREWERS
Pubs and brewing support 900,000 jobs in towns and communities throughout the UK and contribute £23 billion to the UK economy.
At an uncertain time, with the country divided over many issues, Britain’s pubs are a force for good and have a unique role to play. They are at the centre of Britain’s socio-economic make up, bringing our diverse communities together and enhancing Britain’s reputation abroad. They are among the top three places to visit for tourists coming to the UK.
Brewing is an important British manufacturing sector, the third largest food and drink export from the UK and beer is integral to the Great British Pub. Over 80% of beer consumed in the UK is produced here. A competitive tax environment is essential at this time.
Many pubs are facing huge business rates rises following the 2017 revaluation. The £1,000 pub-specific business rates relief for 2017/18 is very welcome, but the disproportionate rates burden that pubs face continues to grow. Pubs pay five times more in Business Rates than their share of rateable business turnover whilst on-line businesses for example face a much more benign tax environment. Transitional relief helps, but tapers off and with the further planned increases over the coming years, this will be very difficult for many pubs to sustain.
As a property-based, people business whose core product is beer, community pubs are reeling under the weight of sharply rising taxes and regulatory costs. Already, one pound in every three spent in the pub goes to the Exchequer. For Britain’s brewers, up to half their turnover is excise duty – a huge disadvantage compared to our near neighbours at this crucial time.
The 3.9% beer duty increase in March 2017 was a major blow, severely undermining fragile sector confidence and a stark reminder of the duty escalator period. Under the escalator, beer tax increased by an eye-watering 42%, hitting those on lowest incomes the hardest. Further planned beer duty increases will result in thousands of job losses throughout the UK, and put at risk new investment in British brewing and pubs.
We are therefore urging the Government to:
- extend and increase the pub-specific rates relief beyond this year and set out the timetable for major reform of the system.
- implement at least a freeze in Beer Duty for the duration of the Parliament
These measures will create thousands of additional jobs, boost inward investment, tourism and export growth, and ensure a pint in the pub remains an affordable pleasure, bringing together people from all walks of life.
Further details along with additional supporting evidence and analysis can be found in the submissions made by individual organisations to the Treasury pre-Budget call for evidence.
We would welcome the opportunity to discuss this further.
Neil Williams
Head of Media
British Beer & Pub Association
Brewers Hall
Aldermanbury Square
London
EC2V 7HR
Phone: 020 7627 9154
Mobile: 07879003467