Duty freeze would save 7,500 industry jobs, BBPA claims

A freeze on beer duty in next month's Budget would save 7,500 pub industry jobs over the next 12 months, a trade group has claimed.

The British Beer & Pub Association (BBPA) has made the claim in its Budget submission - and urged the government to freeze duty, pointing to a 20 per cent rise since March 2008.

Beer tax is due to increase two per cent above inflation in the Budget as part of the escalator announced two years ago.

This will be on top of any new increases from Alistair Darling, which is feared by some in the trade.

The BBPA has also called for the government to look again at lowering duty on beer to reflect its status as a low-strength product.

Its submission points out that beer duty has risen by 14 per cent in real terms since 1997, while duty on spirits has dropped 20 per cent.

Brigid Simmonds, the BBPA's chief executive, said it was time for the Chancellor to "recognise the social, community and economic value of a low strength drink like beer and social drinking in pubs".

She added: "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."

According to the BBPA, it now has more than 100,000 supporter for its I'm Backing the Pub campaign - including 163 "parliamentary candidates".