Government earns five times more from beer sales than brewers and pubcos

The Government makes five times as much money from the sale of beer in Britain as the nation’s brewing and pub companies, research revealed today.
 
The Oxford Economics study, commissioned by the British Beer & Pub Association (BBPA), shows that the Government raised £7.2b from taxes including excise, VAT, employment and corporation taxes. At the same time the profits of the brewing and pub sector on beer sales totalled £1.4b.
 
Brigid Simmonds, chief executive of the BBPA said: “This analysis highlights a considerable and unsustainable imbalance in who makes what from sales of beer in Britain. Government is extracting enormous value from the beer sector in tax, while the profit margins of the companies that make and sell beer are being squeezed wafer thin. 
 
“We fully acknowledge that taxes on beer play an important role in the public finances, particularly at this difficult time,” she added. “However, it is important they do not become unsustainable and restrain the ability of the sector to invest and grow.  Government is in danger of slowly strangling the goose that lays this golden egg.”
 
The BBPA also revealed that 92 MPs, including 47 Labour MPs, have now signed an Early Day Motion that opposes Government plans for another tax increase in January, when VAT on beer is due to return to 17.5%. 
 

Eleven pubs close each week in London, finds new BBPA survey >>
 
British Beer and Pub Association launches manifesto >>
 
Beer tie row rumbles on >>
 

By Neil Gerrard

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