Beer and pub sector faces £300m bill in Budget timebomb, says BBPA.
Brewers and pubs face an extra £310 million in rates and duty, BBPA warns
Extra bills could stifle growth and threaten business and the million jobs that rely on the industry
Chancellor must use Budget to support the sector which pours billions into the economy and is a cornerstone of the community
New estimates by the BBPA revealed that unless the Government takes urgent action, the beer and pub sector faces a timebomb in soaring costs at the Budget.
Calculations by the British Beer and Pub Association show that if beer duty and rates rise in line with inflation, and the vital business rates relief ends, the sector faces a staggering £310 million bill.
The BBPA is warning this could dramatically choke growth and threaten the survival of small businesses and risk vital jobs across the UK.
Currently, the beer and pub industry invests £2 billion a year to drive growth but additional, new costs would hollow out this investment, the BBPA said.
Emma McClarkin, CEO of the British Beer and Pub Association, said: “The clock is ticking on this Government to uphold their pre-election promise to support our industry.
“Government must be clear-eyed about the staggering extra costs which will choke growth, be bad for business, and risk people’s livelihoods.
“Our industry pours billions into the economy, forms the backbone of the UK job market and is a cornerstone of the community yet, with pubs making an average of just 12p a pint thanks to the huge cost of doing business, it is in a fragile state.
“If the Government doesn’t act then communities, jobs, and the economy will pay the price. If Government invests in the industry, then we can continue to boost the economy, employ more people, and remain a home from home.”
The BBPA is calling on the Government to cut beer duty, reform business rates, and maintain the vital business rates relief for the sector to carry on contributing to the economy and job market.
A 5% cut in beer duty in the upcoming Budget would result in up to 12,000 additional jobs, mainly in pubs, the BPPA said.
The BBPA calculated that, should the business rates relief end, as it is currently scheduled to at the end of March, along with an inflationary uplift, it would cost the sector approximately £235m.
A rise in beer duty by 2.1% in line with inflation (RPI), as is default, would cost the sector approximately £75 million, according to the BBPA.
The wider cumulative impact of new punishing Government-imposed rules and regulations could lump an extra £750 million bill on the sector.
The sector is facing a raft of new, punishing, rules and costs which could spell the end of many businesses and jobs, the BBPA warned. These include:
A potential rise in beer duty
Business rates relief dropping off a cliff edge in April 2025
Inflationary increases to the business rates
New packaging bills as part of the Extended Producer Responsibility
A potential rise in employer national insurance contributions
A rise in living and minimum wages
The warning comes after more 80 senior figures from the brewing and pub sector urged immediate action on beer duty and business rates relief to secure the future of brewers and pubs.
With 50 pubs closing each month in England and Wales, key brewing and pub leaders warned that without a beer duty cut and critical business reforms pubs could close, and it may be the end of the affordable pint.
Latest figures revealed that the beer and pub sector contributed £34.4billion to the economy and supported more than a million jobs in one year.
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