Research reveals pubs make just 12p on a pint of beer

20-Sep-2024 - Last updated on 20-Sep-2024 at 08:53 GMT

Targeted support: The BBPA has called for a 5% duty cut as pubs make just 12p on a pint of beer (Credit: Getty/SolStock)

An industry trade body has called for a 5% duty cut in the upcoming Budget as new research revealed pubs make just 12p on a pint of beer after costs and taxes have been deducted.

The British Beer & Pub Association (BBPA) commissioned data, from 2024 Oxford Economics research, showed pubs make just 12p on every pint sold after tax and costs have been deducted.

Ahead of Chancellor Rachel Reeves first Budget on Wednesday 30 October, the association has called for a 5% cut to beer duty and warned without targeted support, many pubs, which it described as the “backbone of the UK jobs market”, would be lost for good.

According to the research, hospitality and brewing firms support 1,040,000 jobs, up more than 100,000 compared with pre-Covid, when the figure stood at 936,000.

Vital sector

The figures demonstrate how much people around the country “depend upon the industry to keep them in work” and put money in their pockets, the BBPA said.   

It added a 5% duty cut would bolster investment in businesses and people, enabling to sector to support an additional 12,000 jobs.

BBPA CEO Emma McClarkin said: “Our brewers and pubs are helping people around the country earn money, gain skills and experience, and support both the local and national economy.

“From those pulling pints to the farmers growing the hops, so many rely on our treasured beer and pub sector for their livelihoods and careers.

“But for the job market to flourish – and for us to keep supporting those jobs - it’s vital our sector is given the support it needs to continue.”

Heart of communities

Moreover, the BBPA said the industry was “one of the most heavily taxed sectors per pound of turnover” in the UK, with tax making up 40% of UK brewing turnover and £1 in every £3 spent in pubs.  

The trade body added a “decreased demand for drinks” in pubs has led to closures and job losses so keeping the price of a pint “affordable” by cutting duty would allow the sector to “thrive”.

In addition, the association urged the Government to reform business rates, a Labour manifesto pledge, and keep the 75% business rates relief in place.

McClarkin continued: “We are urging the Government protect the Great British brewing and pub sector - the beating heart of our communities - to ensure it can remain a driving force for growth, jobs, investment and social value whilst keeping the price of a pint affordable for all.” 