Beer sales in pubs drop 6% in first quarter

The association put the drop down to the continued huge rises in the tax on beer. The decline in pub sales amounts to 57m fewer pints sold, compared to last year’s first quarter.

In contrast, the Beer Baromoter found that off-trade sales were up nearly 5% in the first quarter.

However, beer sales are now falling at a slower rate than in the previous four years. Overall beer sales fell by 1.4% in the quarter compared to last year.

In the year to March 2012, overall beer sales were down 2.9%, following the 7% rise in beer duty last March.

The BBPA believes that current pressures on the beer and pub sector, on which almost 1m jobs depend, further highlight the poor decision of the Government to raise beer tax by a further 5% in the Budget – making for an astonishing 42% tax hike since March 2008.

The recent Budget tax hike was made under the controversial ‘duty escalator’ policy, despite widespread calls to rein in the rises. The BBPA and Oxford Economics believe this decision will cost some 5,000 jobs in 2012/13.  

A Government e-petition​ demanding an end to these punitive tax rises has already attracted nearly 29,000 signatures.

BBPA chief executive Brigid Simmonds said: “These figures show the Chancellor was totally wrong to raise beer tax again in his Budget, as this discredited policy continues to hit pubs hard. This key British industry could be an engine of growth for the economy – but poor tax policy is damaging our potential. The public are getting behind calls for a change in policy, and signing the e-petition in their thousands. I hope people will continue to respond positively and back a tax freeze – and I hope the Government will listen.”