Beer duty freeze could save 7,500 jobs
A freeze on beer duty could save 7,500 jobs over the next 12 months, the British Beer and Pub Association (BBPA) has told the Treasury.
In its Budget submission, the BBPA said that duty on beer should be set at a lower level to reflect its status as a low-strength alcoholic drink produced in Britain.
The BBPA urged a freeze on beer duty this year as a first step to help safeguard the 400,000 jobs dependent on the production and sale of beer.
Duty has risen 20% since March 2008 — raising te industry's tax bill by £600m during the recession — and is due to rise a further 2% above inflation in the Budget.
The BBPA's Budget submission has also been sent to new Pubs Minister John Healey.
The submission says:
• Pubs are closing at an unprecedented rate, accelerating from two per week in 2005, to more than five every day. Sales of beer are down £650 million in the last year
• Beer duty has increased by 14% in real terms since 1997, while duty on spirits has fallen by 20%
• A duty freeze in the forthcoming budget would save 7,500 jobs in the next 12 months
• Seven in ten people (71 per cent) think the tax on a pint of beer is already too high
"It's time for the Chancellor to recognise the social, community and economic value of a low strength drink like beer and social drinking in pubs," said BBPA chief executive Brigid Simmonds.
"The appointment of John Healey as Minister for Pubs is a welcome sign that the Government is listening to public concerns about beer tax and pub closures.
"Pubs are at the heart of our community and make a significant contribution to our economy. Beer is an iconic British drink, yet the impact of blunt duty increases has further hit our ability to generate economic activity to help pull Britain out of recession.
"By treating beer differently in duty rates we can support a home grown industry and safeguard thousands of jobs.
"It is time to give beer a break and show that the Government is serious about backing the British pub."
