7m fewer pints of beer drunk in pubs

Almost seven million fewer pints were drunk in pubs over the first four months of the year.

The big January freeze was partly to blame for the 8.8% volume drop on last year, according to the British Beer and Pub Association's (BBPA) beer barometer.

Sales in the off-trade were down 0.5% and total beer sales fell by 5.1% on the same period last year.

The year-on-year change in beer sales is improving — the rate of decline easing to 3.5% in the year to March from 4.2% previously.

The BBPA has urged the new coalition Government to help beer by not increasing duty on beer in the Budget to be held on 22 June.

The 5% duty rise on beer came into effect at the end of the quarter. The BBPA estimates that it will put an extra £161m tax burden on the industry.

"The exceptional impact of winter's icy blast has taken its toll, but this does not fully explain the extent of the current difficulties facing the industry," said BBPA chief executive Brigid Simmonds

"The Budget in March raised our beer tax bill by a further £161m. It means over the last two years beer taxes have increased 26 per cent raising costs by £761m, during a time of deep recession.

"We are looking for a new Government to approach the issue of beer taxation with a fresh pair of eyes. 

"Both the Conservatives and Liberal Democrats have stated that beer taxation needs reform and pubs need support because of their value to communities. It's time to deliver on those promises.

"As a first step we are looking for the Government to abolish the beer tax escalator. 

"Secondly, if the Government does put up VAT we are looking for a compensatory reduction in beer tax. 

"This would be a targeted measure to help pubs, because over half of beer sales are in pubs and 60% of drink sales in community pubs are beer."