Brewers plead for tax freeze as beer sales dive

The amount of beer sold by pubs is at its lowest since the 1930s Great Depression years according to the British Beer & Pub Association (BBPA).

In response brewers have written to MPs demanding a freeze on beer duty to "rescue Britain's national drink".

The BBPA says that the industry is facing stark pressures including soaring costs of barley, malt, glass, aluminium and energy prices.

It argues that pubs are the worst off saying that since 1979 the total beer market fell by 22 per cent, or 2.5 billion pints. However, beer sales in pubs fell by 49 per cent or 5 billion pints.

Rob Hayward, chief executive of the BBPA, said: "We believe the benefits that have been enjoyed by other drinks from a tax freeze should be extended to Britain's national drink - beer."

BBPA figures show that companies now earn on average just 0.7p per pint profit compared with the average 33p per pint paid to the Chancellor in beer duty and that pubs are fairing the worst.

Since 1997, beer duty has increased by 27 per cent and consumption fallen by 11 per cent. Meanwhile duty on spirits has risen by just 3 per cent and wine by 16 per cent.

Hayward added: "We are calling for Government policy to encourage and support Britain's businesses. British brewers and beers are of world renown. But our efforts to remain competitive are being underminded by a tax policy that is eroding the foundations of our business.

"We need a tax freeze and that is what we are calling on the Chancellor to deliver."