A freeze on beer duty tax in the upcoming UK Government’s Budget could save more than 7,000 jobs in the brewing and pub sector, the British Beer & Pub Association (BBPA) has said.
Up to 7,500 sector jobs could be saved over the next 12 months by a duty tax freeze in the Budget, which is set to be announced within the next six weeks.
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Beer volume sales are down in mid single digits in the UK over the last 12 months and up to 39 pubs are closing down every week, according to BBPA figures. Duty tax, meanwhile, has risen 20% in two years.
The BBPA today (23 February) joined other industry groups in calling for the Government to suspend its ‘tax escalator’ on alcohol, which provides for a 2% above inflation duty rise in this year’s Budget.
But, the BBPA broke with wine and spirits bodies to call for a lower tax on beer, based on its lower alcoholic strength.
“It’s time for the Chancellor to recognise the social, community and economic value of a low strength drink like beer and social drinking in pubs,” said BBPA chief executive Brigid Simmonds.
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By GlobalDataHer comments are similar to those made by the Conservative opposition party, which has called for tax increases on higher strength drinks.
The Conservatives are still expected to win a general election in the UK, which must take place prior to June, although the latest polls show that the Labour Government is closing the gap.
Drinks industry leaders are talking to both sides ahead of the vote.
