Beer duty freeze would secure 2,400 jobs this year, say leading figures

By Ellie Bothwell

- Last updated on GMT

Related tags Public house Bbpa

BBPA's Brigid Simmonds: 'The recovery remains fragile, but we can continue this good news story for the Government, with a further duty freeze'
BBPA's Brigid Simmonds: 'The recovery remains fragile, but we can continue this good news story for the Government, with a further duty freeze'
A freeze in beer duty would secure 2,400 jobs this year alone and promote growth and investment in Britain’s vital brewing and pub sector.

That’s the message from brewers and pubs, as they put their case on the Budget 2014 to economic secretary to the treasury Nicky Morgan MP.

Leading industry figures – including British Beer & Pub Association (BBPA) chief executive Brigid Simmonds, BBPA chairman and Shepherd Neame chief executive Jonathan Neame, Molson Coors managing director Simon Cox and BBPA director of policy Andy Tighe - told Morgan that a duty freeze in 2014 would lead to 2,400 additional jobs in the first year alone, at virtually no cost (£4m) to the Government, citing new research from independent experts, Oxford Economics.

They said it would provide a further boost to the industry, building on the success of last year’s historic Budget duty cut.

Tax revenues

They added that British beer remains hugely overtaxed, with British beer drinkers paying 42% of the entire EU beer duty bill. For every pint sold in the pub the Government receives over 50 times more in tax revenues than the brewer retains in profit; while nearly half of brewer turnover, and one pound in every three spent in pubs, goes to the Exchequer, they said.

Earlier this week, the BBPA reported that beer sales had grown for the second successive quarter – the first time this has happened in ten years – and said while companies have been committing to reducing prices, increasing investment and creating additional jobs, a duty hike in March could rapidly undo these benefits.

'Compelling case'

BBPA chief executive Brigid Simmonds said: “There is a compelling case for a beer duty freeze. The Government has made an excellent start, in abolishing the beer duty escalator and with the historic cut in duty last year. It has been a real boost to jobs and growth in the sector, at a time when the economy most needs it.

“The recovery remains fragile, but we can continue this good news story for the Government, with a further duty freeze. And in avoiding further damage to beer and pub businesses, a freeze can be achieved with virtually no cost to the Treasury. It is a win-win situation for the Government.”

Related topics Beer Legislation

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