News

Beer Duty – Brewers’ Budget response
12.03.2008

Commenting on today’s increases in beer duty in the Budget, Rob Hayward, British Beer & Pub Association (BBPA) Chief Executive, said:

“The millions of people who enjoy beer have just been hit by a £50.5 million a month tax raid on their family budgets.

“By aiming a tax hike at beer, the Chancellor is shooting himself in the foot. Treasury revenues will continue to fall, pubs will continue to close and beer sales sink further.”

“Every single day, the Treasury is losing over £1 million in beer taxes and four pubs are closing. People are now drinking 1 million fewer pints a day compared with last year. That trend will continue. It’s a decision doomed to failure – bad for taxpayers, beer, pubs and bad for the Treasury as well.

“Government is punishing all beer drinkers rather than tackling the minority of drunken hooligans. But Government tax policy is fuelling Britain’s binge drink problem by driving people away from beer, out of the pub into the arms of the deep discounting supermarkets. They don’t pay beer duty and don’t allow brewers to pass it on, so their rock bottom prices will remain unaffected by this tax hike.”


Notes to Editor

For every pint of beer sold in the on-trade, the Government receives approximately £1.14 in tax revenue (beer duty = 33p, VAT = 37p, employment taxes = 44p)

In 2007 on-trade sales fell by 6.5% (1.25 million barrels) or 1 million pints per day

There was no increase in off-trade sales in 2007 (where tax revenue per pint = 0.55p)

The British Beer and Pub Association is the UK’s leading organisation representing the brewing and pub sector. Its members account for 98% of the beer brewed in the UK and own nearly two thirds of Britain’s 58,000 pubs.


For further information please contact:
Mark Hastings, Director of Communications, Tel: 020 7627 9151 / 07884 181 794
Neil Williams, Communications Manager Tel: 020 7627 9156 / 07974 249 779