BBPA: Fairer beer duty would create 30,000 new jobs

Around 30,000 new jobs would be created if beer was treated more fairly in the duty system, the British Beer & Pub Association (BBPA) has told the government.

In its submission to the Treasury's review of alcohol taxes, the group has pointed to a new study showing 29,500 jobs would be created if the system was rebalanced.

Research by Oxford Economics suggests the current tax system is discouraging beer drinking - resulting in lower tax revenues and fewer jobs, as the rate of pub closures remain at 39 a week.

"We've had many years of duty changes that have favoured other categories of drink - yet taxing beer fairly would create thousands of new jobs, and substantial extra tax revenues," said BBPA chief executive Brigid Simmonds.

A change in approach would bring in around £250m in extra revenues, from employment taxes and corporation tax, the study showed.

Simmonds added: "There is potential for a huge success story that could be grasped by the new government. Everyone would benefit from a new and fair approach."

In its submission, the BBPA also revealed that it, along with CAMRA and Society of Independent Brewers, has written to the European Commission calling for more flexibility over excise duty rates, as part of a review of EU duty levels.

The BBPA also wants the government to review the progressive beer duty (PBD) system, ahead of next year's Budget, to "ensure a fair and sustainable system for the long term".

The PBD system has stimulated "considerable growth" in the micro-brewer sector, the BBPA said, but argued brewers just above the prescribed size thresholds are at a "significant commercial disadvantage" and there is a "considerable disincentive" for eligible brewers to grow.