BBPA argues for lower beer tax based on low strength and UK production

23 February 2010 by
BBPA argues for lower beer tax based on low strength and UK production

Beer should be taxed at a lower rate of duty because it is a low-strength, UK-produced drink, according to the British Beer and Pub Association (BBPA).

The proposal is part of the BBPA's submission to the Treasury in advance of the March Budget. It is also being sent to the Government's new working party on pubs, headed by recently-appointed Pubs Minister John Healey.

As a first step, the association said that Chancellor Alistair Darling should freeze tax on beer. Duty rates on beer have increased by 20% since March 2008, costing the industry £600m, the BBPA claimed. It added that beer duty has increased by 14% in real terms since 1997, while duty on spirits has fallen by 20%.

The BBPA argued that dropping duty would help Britain's pubs and brewers, with 400,000 jobs depending directly on the production and sale of beer.

Brigid Simmonds, chief executive of the BBPA said:

"It's time for the Chancellor to recognise the social, community and economic value of a low strength drink like beer and social drinking in pubs. The appointment of John Healey as Minister for Pubs is a welcome sign that the Government is listening to public concerns about beer tax and pub closures.

"By treating beer differently in duty rates we can support a home grown industry and safeguard thousands of jobs."

Hotels, pubs and restaurants win recorded music fee battle >>
Some beers can strengthen bones, claim scientists >>

Rate of pub closures slows down, says BBPA >>
By Neil Gerrard

E-mail your comments to Neil Gerrard here.

If you have something to say on this story or anything else join the debate at Table Talk - Caterer's new networking forum. Go to www.caterersearch.com/tabletalk

Caterersearch.com jobs
Looking for a new job? Find your next pub job here with Caterersearch.com jobs

Blogs on Caterersearch.com](http://www.caterersearch.com/blogs) Catch up with more news and gossip on all Caterer's blogs
[Newsletters For the latest hospitality news, sign up for our e-mail newsletters.
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking