Slash beer duty by 50% to boost pubs, Chancellor told

A 50% cut would encourage punters to return to the pub and stimulate job growth in the sector, industry bodies said in a letter to Chancellor Rishi Sunak.

The letter's signatories included the Society of Independent Brewers (SIBA), the Campaign Campaign for Real Ale (CAMRA), the British Institute of Innkeeping (BII) and UKHospitality (UKH).

The coalition said the cut would equate to 21p on a pint of beer served in a pub and mean the average pub could save more than £15,000.

Support needed

It would also amount to a “Brexit bonus” as the country is now free to charge a different rate for beer sold on draught in pubs compared to bottled and canned products sold in supermarkets.

Pubs were in dire of need of additional support to bolster their recovery this summer, the groups said.

“This investment will benefit brewers, pubs and consumers in communities across the land and help maintain their status at the heart of all that’s unique and special about the British way of life,” the letter concluded.

“The majority of beer produced by the UK’s independent brewers is sold into pubs,” SIBA boss James Calder, said. 

Levelling up

He added: “A lower duty rate for draught beer would support the Government’s levelling up agenda by investing into communities, supporting wet led pubs struggling to recover from the pandemic, and brewers and securing the employment of thousands in hospitality, particularity amongst young people."

The Government must create a tax regime that considers the benefits of the out-of-home sector, UKHospitality chief executive Kate Nicholls said. 

“The last year has been horrific for the pub and hospitality sector,” Nicholls said.

“Reducing draught beer duty would be a critical signal, helping us to create jobs and generate sustainable economic growth.”