TAXATION
Pubs and breweries are amongst the most heavily taxed sectors in the UK
We campaign to reduce the unfair tax burden on our sector and support our members to understand how tax policy affects them.
Please to watch this video.
Key Policy Areas
- Beer and Alcohol Duty
- Business Rates
- VAT
- Visitor Levy
Beer and Alcohol Duty
Beer duty in the UK remains among the highest in Europe, despite a period of freezes and reductions successfully achieved over the last decade.
High beer duty ultimately means higher prices for consumers, a reduction in innovation and consumer choice, risks undermining the ongoing viability of community pubs and makes the UK a less attractive market for inward investment by international brewers.
We are working to reduce beer duty towards the European average over time and increase the draught discount to 30% to further support pubs.
We have worked closely with HMRC on the modernisation of the duty regime to one which taxes all action rationally, on the basis of strength.
Business Rates
Business rates are a major outlay for businesses up and down the country and disproportionately impact pubs and other brick-and-mortar venues.
As hospitality venues, pubs cannot move online and are at a disadvantage as fewer and fewer physical outlets must pay a larger share to support local budgets. Pubs pay 2.1% of the business rates burden despite contributing 0.4% of economic activity across the economy.
Following the 2025 Budget, the BBPA successfully campaigned for a pub-specific business rates relief.
Fundamental and permanent reform is necessary to rebalance the business rates burden. We are working to reform the methodology by which pubs are valued to ensure accurate, transparent, and fair business rates for pubs.
VAT
The UK is an outlier in Europe as one of the only countries to not have a hospitality-specific reduced rate of VAT
Reducing VAT on hospitality and tourism as a permanent measure will trigger a virtuous cycle of increased consumer spending, investment in facilities and the creation of jobs, leading over a number of years to fiscal gains for HM Treasury.
We campaign for lower VAT for the hospitality sector to provide equity with the retail sector and support the UK’s tourism offer.
Visitor Levy in England
The British Beer and Pub Association opposes the introduction of an overnight visitor levy, which risks adding further cost pressures to an already highly taxed hospitality and tourism sector at a time when businesses and consumers are under strain.
The UK already applies a 20% VAT rate to accommodation, significantly higher than many European competitors, and adding a further levy would undermine the country’s international competitiveness and discourage overnight stays.
Tax is killing our breweries and pubs
Pubs and brewers are vital to jobs, communities and the economy, yet face the highest tax burden of any sector, with taxes taking 40% of brewers’ turnover and a third of pub spending.

Duty Rates Across Europe
The UK’s beer duty is one of the highest in Europe. This graph shows how it compares to other countries.

Tax on a pint
Before your beer reaches the bar, brewers and pubs have already had to pay a range of different taxes. This graph shows the costs that make up an average pint.

The average price of a pint in the UK
Rising inflation and cost pressures throughout our pubs’ and brewers’ supply chains have an effect on the price you pay at the bar. This graph shows how these issues have impacted the cost of a pint in the UK.
Resources & Action

Armed Forces Covenant
We have signed the Armed Forces Covenant, pledging to support serving personnel, veterans, reservists, and military families across the industry.
By signing the Covenant we pledge to recognise the skills, experiences, and contributions of the Armed Forces community, and help the sector ensure the community faces no disadvantage in accessing employment, services, or opportunities.

The Open to All Charter
The Charter was developed with the BBPA’s members to promote workplaces that attract and retain a diverse workforce.
By committing to inclusive recruitment, fair treatment and strong support for employees, the Charter strengthens the sector’s ability to develop skilled teams and create sustainable employment opportunities.

Challenge 21 and Challenge 25
The BBPA’s Challenge 21 scheme has been raising awareness among publicans and their staff of the need to be vigilant in preventing underage sales for over 20 years. The scheme serves as a reminder to customers that it is against the law to purchase alcohol if you are under 18, or to purchase alcohol on behalf of someone who is under 18.

World Cup Guidance
Our World Cup guidance, produced in partnership with UKHospitality, the British Institute of Innkeeping (BII), the Local Government Association and the National Police Chiefs’ Council aims to encourage police, licensing authorities and the licensed trade to work together to ensure the safe and successful showing of football tournaments in pubs.

Long Live the Local
Our Long Live The Local Campaign exists to save pubs in communities across the UK through reducing the unfair tax burden on our sector.
Add your support, it only takes two minutes but could help your beloved local stay open.

Joint Member Survey
Each quarter, the BBPA along with other hospitality trade bodies (the British Institute of Innkeeping, Hospitality Ulster and UKHospitality) survey our members across a range of topics to gauge sentiment and collect data on business operations.
The responses represent approximately a wide range of hospitality sites across the UK.

Latest Employment & Skills Consultations
The government is seeking views through open consultations related to employment and workforce policy as part of its Employment Rights Act.

England Pub Business Rates Calculator
We have developed a practical and easy to use calculator to help publicans estimate what their business rates are likely to be.



