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2nd October 2014

Conservative party conference – good news for Chancellor, with beer Budget cheer  

The British Beer & Pub Association (BBPA) has released its ‘Cheers 2014’ report, detailing how consecutive beer duty cuts have created 16,000 jobs and boosted beer sales, at very little cost to the Government. The report, produced in partnership with CAMRA and SIBA, was presented to Chancellor George Osborne at the Conservative Party Conference, along with a new, special-edition beer, ‘George’s Budget Booster’, to celebrate the benefits of the duty cut.

On the report itself, the BBPA commissioned Oxford Economics to examine the impact of the Budget decision to discontinue the beer duty escalator and cut two consecutive pennies off a pint in 2013 and 2014. It is forecast that by next year an additional 16,000 more people will work in the sector than if the escalator had remained in place.

The successive cuts have boosted beer sales by over 500 million pints, and channeled an extra £44 million in capital investment (alongside over £400 million already planned) into the brewing and pub sector.

Duty cuts have led to renewed optimism across the sector. The BBPA surveyed brewers and pub operators after the March 2014 Budget to assess the impact of the Chancellor’s decision. Over three-quarters of respondents intended to launch new products, across both beer and pubs, directly as a result of the cut in beer duty.

The wider supply chain and economy is also benefiting markedly. In the BBPA survey, over 90 per cent of respondents intend to increase their investment in the UK.

The report also indicates that price increases have slowed since the escalator was removed. Since the Budget, prices for bitter and lager have risen by just one per cent.

Brigid Simmonds, BBPA Chief Executive, comments:

“The Cheers report contains really good news, on jobs, on pubs, and on investment in our industry. I hope this boost for our sector results in further action on beer duty in the March Budget. A hat-trick would do very nicely!”


For further information please contact:

David Wilson: Public Affairs Director Tel: 020 7627 9151

Neil Williams, Head of Media, Tel: 020 7627 9156


Notes to editors:

The below image is available; Andrew Griffiths MP, Chairman of the All Party-Parliamentary Beer Group, The Rt. Hon George Osborne MP, Chancellor of the Exchequer and Brigid Simmonds, Chief Executive, BBPA