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Budget 2014 – BBPA’s ‘Pub Story’ points to huge tax and regulation bill facing local pubs


Local pubs face an astonishing annual bill from the Government of over £122,000 each, according to new figures published today by the British Beer & Pub Association. The figures feature in a new publication, ‘The Pub Story’, published today by the BBPA.

Beer and other alcohol duties land a typical pub with an eye-watering cost of £33,000, with business rates coming in at £12,500 per premises. With pubs still under pressure, the BBPA says that as a minimum, a freeze in beer duty in the Budget on March 19th is the most immediate way the Government can tackle the problem.

Beer sales account for two thirds of all alcoholic drinks’ sales in pubs, says the association, and pubs have a unique and special link with Britain’s brewing industry, as the route-to-market for Britain’s thousands of iconic, locally-produced beers.

VAT is £66,000 and a host of other taxes and regulatory costs brings the total bill to £122,200. The BBPA has also asked the Government to examine steps it can take to reduce the impact of VAT on the hospitality industry.

While the Government implemented a highly-successful and historic cut in beer duty last year, UK duty remains among the highest in Europe. Duty rose by 42 per cent from 2008 to 2013, and is now an astonishing 12 times higher than in our large neighbour, Germany. Over 100 MPs have now signed an Early Day Motion supporting an industry-wide campaign for more action on beer duty.

Brigid Simmonds, BBPA Chief Executive, comments:

“These new figures show the financial burden that excessive taxes and regulation place on pubs. This Government has shown that it understands the scale of the problem, but more action on taxation is needed, and action on beer duty, in the Budget on 19th March, is the best place to start.”

Notes to editors:

A pdf version of “The Pub Story" can be found at the link below.

Write to your MP on beer duty via the CAMRA website here.

The BBPA’s Oxford Economics report, which provides unique local data on the impact of pubs in every UK Parliamentary constituency and local authority, is available on the BBPAs website here:

UK beer duty – key facts:
• The beer and pub sector supports over 900,000 jobs, 46 per cent of which are held by 16-24 year olds.
• Beer and pubs contribute £22 billion to UK GDP and generate £12 billion in total tax revenue.
• 82 per cent of the beer sold in Britain is made here in Britain.
• 1 job in brewing generates 1 job in agriculture, 1 in the supply chain, 1 in retailing and 18 in pubs.
• From 2008 to 2013, beer tax increased by 42 per cent, with beer sales down 21 per cent, 7,000 pubs closing, and 58,000 UK jobs lost.
• A beer duty freeze in 2014/15 would cost the Treasury just £4 million, according to Oxford Economics.
• Beer duty rates in the UK are still among the highest of any country in Europe


» The Pub Story 2014


Beer Duty, Pubs, Machine Games Duty, Licensing , Food , VAT, Business rates

For further information contact:

Neil Williams
Head of Media
Tel: 020 7627 9156 / 07974 249 779

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