Beer decline costs UK government millions

New figures published by the British Beer & Pub Association reveal that UK government tax revenue from beer sales fell by £257 million in 2010, largely as a result of a 7.5% decline in pub sales.

The Association argues that these figures, released today in its UK Quarterly Beer Barometer, leave no room for the government to impose the further beer tax hikes scheduled for the 2011 Budget due on 23 March.

The report shows that pubs were hit harder than off-licences, which remained fairly stable with a 0.6% increase. Total UK beer sales fell by 3.9% in 2010 compared with 2009. In the past three years, the BBPA calculates that pub beer sales have fallen by as much as 20.2%, which it blames on tax rises during this period.

Commenting on these findings, BBPA chief executive Brigid Simmonds said: “The government should abandon plans for above inflation hikes in beer tax in the Budget, as further rises are simply unsustainable.”

Calling on the Treasury to adopt a broader perspective on the role of pubs in society, Simmonds argued: “Beer and pubs are vital for the economy, and pubs play a vital role in local communities.

“With beer the core seller in pubs, the government needs to pursue more pub-friendly tax policies. This would create a win-win situation, with a boost for lower-strength, pub-based drinks like beer, and more revenues for the Treasury.”

Gabriel Savage, 25.01.2011