Beer rate drop shows need for tax freeze, says BBPA

An overall drop in beer consumption is a further reason for the government to take it easy on the trade at the Budget, according to the British Beer & Pub Association (BBPA).

The trade group has released analysis of official figures that show a slight increase in overall alcohol consumption for the last 12 months, but a drop in beer sales.

The HM Revenue and Customs figures indicate a 0.6 per cent increase in alcohol drinking rates per person. This follows steady declines since 2004.

But while spirit levels are up four per cent and wine 1.1 per cent, the rate of beer drunk per head is actually down 1.9 per cent.

Brigid Simmonds, BBPA chief executive, said: "With total alcohol consumption nearly 12 per cent lower per head than in 2004, these figures show that we need to look beyond the headline figures when it comes to shaping alcohol policy.

"Scrapping plans for further rises in beer duty in the Budget, would also send a signal on encouraging consumption of lower-strength drinks, and crucially at this time, this could also save over 10,000 UK jobs, protecting Treasury revenues, and stop several more pence being added to the price of a British pint, further hitting UK consumers.

"The government says it wants to champion pubs, and herald a great UK manufacturing revival. Our brewing industry is the perfect place to start," she added.

The government is expected to impose the duty escalator at the Budget on March 23, which would see duty increased by two per cent above inflation, which currently stands at around four per cent.