BBPA calls on Government to support British beer and pubs to boost economic growth

The British Beer and Pub Association (BBPA) has called on Government to do more to support the industry following research into the sector’s economic impact.

The North West’s beer and pub sector poured more than £3.5 billion in Gross Value Added (GVA) into the economy and contributed more than £2 billion in tax in just one year, according the trade body’s research. Nationally, the sector is worth £34.3 billion to the UK economy, and contributes £17.4 billion to the Treasury each year in tax.

Despite this, pubs make an average of just 12p on every pint of beer once taxes and costs have been deducted. The industry is also facing multiple burdens and restrictions in the form of proposed increases on packaging costs under new recycling rules, and a potential beer garden smoking ban, causing the BBPA to call on greater support from Government in the upcoming Budget in October to prevent brewers and pubs becoming economically unviable.

Emma McClarkin, CEO of the BBPA, said:

“The North West’s sector’s growth will underpin economic growth, which is why if the Government truly is business-friendly, it must recognise that pubs and brewers are shouldering multiple taxes and costs that are squashing growth and could lead to businesses failing.

“There is no more meat on the bone to cut, which is why it we are calling on the Government reduces the cost of doing business so we can continue to make a massive contribution to the public purse.

“It is imperative there is a reform in the business rates system which currently penalises bricks and mortar businesses like pubs which pay five times more than their share of turnover.

“Until then, the vital 75% business rates relief due must be maintained for pubs so that one of the core cost components of doing business can be controlled. In addition, we urgently need to see a cut in beer duty.?

“Our industry is an economic bellwether and when pubs and brewers suffer, the economy suffers. If the Government wants to succeed in its growth mission, it needs to support our beer and pubs which play such a vital role in our communities.”