CAMRA calls for tax cut hat-trick as new research shows over a thousand pubs have been saved by previous beer duty cuts

The Campaign for Real Ale (CAMRA) is calling on the Chancellor to cut beer duty for a historic third time in next month’s Budget, as a report published today estimates 1,047 additional pubs would have closed if the Government had not scrapped the beer duty escalator and cut beer duty in 2013 and 2014.

CAMRA says a third cut in beer duty would allow the industry to continue to recover, with beer drinkers, publicans and brewers across the UK all likely to benefit and be raising a glass to the Chancellor once more.

The new report, produced by the Centre for Economic and Business Research (Cebr), estimates that:

• Over a thousand pubs saved – an additional 1,047 pubs would have closed by the end of 2014 if the Beer Duty Escalator had remained in place
• 750 million more pints sold –750 million fewer pints of beer would have been sold in the UK  this financial year if the Beer Duty Escalator had remained in place
• 26,000 jobs created – 26,000 additional jobs would not have been created if the Beer Duty Escalator had remained in place
• Higher investment – In 2014 alone, investment in the brewing industry was expected to stand at £61 million higher than it would have if the beer duty escalator had been maintained
• Price of a pint up to 16p higher – the average price of a pint of beer, which currently stands at £3.04, would have cost £3.20 if the beer duty escalator had not been scrapped and replaced by two consecutive 1p cuts in 2013/14

Tim Page, CAMRA’s Chief Executive said: “It is fantastic to see that the beer duty cuts have had a real impact on beer drinkers and pub goers across the country, beyond keeping the lid on the price of a pint and keeping pubs open. Without these measures fewer people would be able to afford a regular pint in their local pub, and yet more pubs would have closed. Reductions in beer tax have helped keep pubs open, created new jobs and kept increases in the cost of beer at a historic low.

CAMRA is calling on the Chancellor to keep consumers in mind and cut beer duty for a third time next month. In addition, we would like to see brewers and pub companies pass on this cut in full so that pub-going remains an affordable activity. At a time when there is concern about the number of people drinking excessively at home, the importance of pubs as places where you can drink responsibly in a social and community setting cannot be overstated.”

Scott Corfe, Head of UK Macroeconomics at Cebr says: “Our research shows that the recent beer duty cuts have provided a significant economic boost to an industry that supports thousands of jobs across the UK. Lower prices due to the duty cuts have prevented over 1,000 pubs from closing and supported 26,000 additional jobs.”

Andrew Griffiths MP and Chair of the Parliamentary Beer Group says: “The Chancellor has already shown his commitment to the beer and pub industries by scrapping the beer duty escalator and cutting beer duty for two years in a row for the first time ever.  There is more still to be done, however, and I hope that the Chancellor will build on the positive moves so far and make it a hat trick of beer duty cuts in the Budget in March.”

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For further information contact the CAMRA Press Office on 01727 79844, email Press Manager Neil Walker on neil.walker@camra.org.uk or the Press team on press@camra.org.uk

Notes to Editors

The beer duty escalator, which added at least 2% above inflation to the price of beer year-on-year, ran from 2008-2012 and had a disastrous effect on the British beer industry, with a punishing 42% rise in beer duty during that period fuelling a shift in beer consumption away from pubs which is still felt today. However since the beer duty escalator was scrapped in 2013 there has been a rebuilding of the beer and pub sectors with the first growth in beer consumption in a decade.

About Cebr

Cebr was founded by Professor Douglas McWilliams, the former Chief Economic Adviser of the CBI and Chief Economist at IBM UK. Cebr delivers microeconomic analysis and forecasts to a wide array of retained private and public sector clients, and provides bespoke economic impact analysis of different policies and regulations at whole economy, sector and individual company levels.