Beer duty

BBPA calls for further beer duty cut at Budget

11-Jan-2017 - Last updated on 11-Jan-2017 at 15:17 GMT

Employment: BBPA chief executive Brigid Simmonds said a further cut in beer duty will affect jobs in the sector

The British Beer & Pub Association (BBPA) has called on the Government to cut beer duty further at the March budget, following new report figures.

The trade body has said the figures in a report it commissioned make it clear there is a case for a further beer duty cut in the Budget on 8 March to protect jobs and investment in the sector.

The industry pays a huge £12.6bn in tax and the BBPA argues a further duty cut would help encourage investment, protect jobs and improve confidence in the sector, according to the report by Oxford Economics.

More than 898,000 jobs are supported by the beer and pub industry
Almost half (42%) are for under 25s
Adds £23bn to the economy in gross value added

Beer duty drop is more important than ever

As the country prepares for the implications of Article 50 being triggered, the BBPA insist a drop in duty is more important than ever for a UK industry where 83% of the beer consumed here, is brewed here.

BBPA chief executive Brigid Simmonds said: “Our sector supports almost 900,000 vital jobs and it is particularly important that we can go on boosting employment, especially for younger people, which is why the BBPA is calling for a further cut in beer duty in the Budget.

“Three historic beer duty cuts since 2013 have brought huge benefits, created jobs and encouraged investment, but our rate of duty is still many times higher than that of our neighbouring countries.

“As we leave the European Union, we need a tax system that encourages investment more than ever before and we will be working hard to encourage the Government to secure further reductions on 8 March.”

Jobs and investment have soared

Since the last report in January 2015, jobs in the sector have soared by 29,000 and capital investment in brewing and pubs has increased to £2bn, a rise from £1.2bn the previous year.

Oxford Economics CEO Adrian Cooper said the recent analysis confirmed the trade is an important source of employment and output at national and local levels.

He added: “Its activity generates a significant amount of tax contributions, investment and opportunities for young people to enter the labour market.”