Consecutive beer duty cuts mean 16,000 new pub jobs, report claims

The Cheers 2014 report​, compiled by the British Beer & Pub Association with the Campaign for Real Ale and the Society of Independent Brewers, calls for the Government to go further and introduce a third cut in next year’s budget, stressing that the cost to Westminster is minimal.

The research by Oxford Economics claims the cuts translated 6,987 jobs in 2013/14, up to 14,410 by 2014/15 and to a total of 16,783 by 2015/16, compared to the impact the duty escalator would have had during that period.

The BBPA also revealed HMRC data showing that while total beer duty receipts fell initially following the 2013 cut, they have started to rise again and were 1.5% higher for the year ending June 2014 – at £3,375m. This coincides with the first rise in beer sales for a decade in 2014.+

The report includes the results of a survey of brewers and pub operators after the 2014 budget, showing over three-quarters intended to launch new products as a direct result of the cut. Over 90% said they intend to increase their investment in the UK.

Good news​

Brigid Simmonds, BBPA chief executive, said: “The Cheers report contains really good news, on jobs, on pubs, and on investment in our industry. I hope this boost for our sector results in further action on beer duty in the March Budget. A hat-trick would do very nicely.”

The report was presented to George Osborne at the Tory conference in Birmingham this week, along with a specially-brewed beer, ‘George’s Budget Booster’.

SIBA managing director Mike Benner said: “We were delighted to be able to present the Chancellor with a well-earned British beer, as a token of our gratitude for the two consecutive cuts in beer duty.

“For SIBA’s 800 or so brewers, this year’s duty cut was a second boost to their confidence in the long-term future for British beer, after many years of punitive taxation. With a government that seems committed to a thriving British brewing scene, our members are more comfortable about investing in their businesses, with positive impact on their local economies and employment.”