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Budget 2016 - BBPA comments on duty freeze and business rates changes

16/03/16


Commenting on the freeze in beer duty and business rates support for pubs announced in today’s Budget, BBPA Chief Executive Brigid Simmonds said:


“This freeze means that beer duty is now 17 per cent lower than it would have been, had the Chancellor stuck with the escalator policy.


“To achieve three cuts and a freeze from the Chancellor over four Budgets, shows a real commitment and concern for both brewing, an important manufacturing industry, and our nation’s pubs. Beer is already 20p cheaper in pubs than it would have been under the escalator and the industry has the confidence to invest.


“Also, around 75 per cent of pubs will benefit from the changes to business rates, with a pub on a rateable value of £50,000 saving £625 per year, from April 2017, and pubs with RV of less than £12,000 paying no Business Rates at all.


“However, we are still paying the second highest beer tax in the whole of Europe. Pubs are facing rises in costs in the coming months, from the living wage, the apprenticeship levy and auto enrolment pensions. The Government has more to do, to support pubs but great to see Government acknowledge how vital they are to their local communities.”


Beer duty quick facts:


Total duty, 5% pint: 52.17p
VAT, 5% pint: 56.67p
VAT plus duty, 5% pint: 108.84p


Average price of a 5% pub pint: £3.40


UK duty is 13 times higher than in Germany
UK duty is 3.26 times higher than the EU average


Notes to editors:

Timeline on new cost pressures:
The National Living Wage is introduced in 2016
The Apprenticeship Levy is introduced in April 2017
Auto-enrolment pensions – all businesses will have to have enrolled their staff by April 2017


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