The All-Party Parliamentary Beer Group (APPBG) report, How Brewing and Pubs Can Help Drive Economic Growth, outlines a 10-point plan for Government to include pubs and breweries at the heart of the UK’s growth strategy.
Compiled from extensive evidence from brewers, pub companies, trade bodies and charities, the inquiry highlights the sector’s economic weight: 1,700 breweries and 45,000 pubs across the UK supporting more than one million jobs and contributing £34.3bn in GVA and £18bn in annual tax revenue.
Despite this, MPs found that a “cumulative burden” of taxation, regulation and high operational costs is “choking investment and profitability.” The report also notes that the sector remains excluded from the Government’s Industrial Strategy, despite its role in local employment and regeneration.
Key proposals
The recommendations include:
- Business rates reform, with a 20p cut in both the small business and standard multipliers, and better transitional relief
- Employer National Insurance reform, including a one-year holiday for under-25s and reduced contribution bands for returning workers
- A 5% beer duty cut and an increased 20% draught beer differential
- VAT reductions on food and drink sales to boost consumer demand
- Extended capital allowances covering pub furniture, kitchen and cellar equipment, and double allowances for Net Zero projects
- Reform of the Apprenticeship Levy to fund accredited training and brewing innovation
- Alignment of alcohol-free beer definitions with EU norms (0.5% ABV) to drive innovation and exports.
‘Overlooked and overburdened’
APPBG chair Tonia Antoniazzi MP (Labour, Gower) said the report shows how pubs and brewers “have been overlooked and overburdened with tax, resulting in missed opportunities for growth and investment.”
She said: “What this report makes clear is that this critical sector has been overlooked and overburdened with tax, resulting in missed opportunities for growth and investment to the detriment of the whole UK economy.
“As the MP for Gower, I am acutely aware of the sector’s impact. I’m delighted to represent four breweries and 62 pubs. These are vibrant, innovative businesses, at the heart of their communities, providing 1,300 local jobs in Gower, stimulating local supply chains and attracting tourists through their fabulous hospitality and warm welcome.
“Our recommendations provide a platform for creating the right fiscal and regulatory environment to enable the brewing and pub sector to deliver economic growth very quickly, benefitting local communities, policy makers and Government.”
The group will now urge ministers to adopt the proposals ahead of the Autumn Budget, describing the report as a “blueprint for sustainable sector-led growth.”