5% beer duty cut could create 13,000 jobs

By Nikkie Thatcher

- Last updated on GMT

Trade request: a 5% beer duty cut is one of the asks the BBPA is calling on the Government for ahead of the Spring Budget in March (image: Getty/Jack Andersen)
Trade request: a 5% beer duty cut is one of the asks the BBPA is calling on the Government for ahead of the Spring Budget in March (image: Getty/Jack Andersen)

Related tags Legislation Beer Finance

A beer duty reduction of 5% by the Government could help create up to 13,000 jobs, new research has claimed.

The data by Oxford Economics that has been highlighted by the British Beer & Pub Association (BBPA) ahead of the Spring Budget, which is set to be announced by Chancellor Jeremy Hunt on Wednesday 6 March.

According to the trade body, cutting beer duty is a central ask of the sector for the Budget as well as a cap to the business rates multiplier and a VAT reduction​ on non-alcoholic drinks and food served in pubs.

The research comes after BBPA data showed more than 500 pubs closed their doors for good in 2023​.

Sector support

It said the combination of stubbornly high energy bills, the third highest beer duty in Europe and no VAT relief for hospitality was the reason behind many of these closures.

The BBPA estimated the sector already supports 936,000 jobs around the UK and contributes £26bn to the wider economy while simultaneously generating about £15bn in taxes.

Furthermore, it stated around four in 10 (40%) of those employed in the trade are 18 to 24-years-old with this generation of staff developing vital skills in a flexible industry.

The loss of pubs is a loss of skills gained for a generation in need of flexible, well-paid, sociable work, it said.

Right environment

Moreover, the trade association stated creating the right environment to ensure jobs can be created and sustained was the job of the Government.

All-party parliamentary beer group chair Alun Cairns said: “It was wonderful to see beer duty frozen once again at the last Autumn Statement and the introduction of the Brexit Pubs Guarantee means there will always be less tax on a pint at the pub than the supermarket.

“Britain’s pubs and brewers generate so much value for local economies and communities and it is clear a cut to beer duty at the Spring Budget can be a driver of economic growth and job creation.”

The research offered proof a 5% reduction in beer duty can deliver vital economic growth across the nation, BBPA chief executive Emma McClarkin said.

She added: “The Chancellor has stated he is focusing on cutting taxes at the Spring Budget – now he has the proof cutting beer duty won’t just affect the cost of a pint but will deliver vital economic growth and create jobs.”

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