Falling UK pub beer sales demonstrate the pressing need for a change in government beer tax policy, according to the British Beer and Pub Association (BBPA).
The BBPA's latest "Beer Barometer" shows that beer pub sales fell by 3.4% in 2011, with off trade sales down 3.7%. In addition, the year saw 9,000 job losses in the beer and pub sector. The figures have led the BBPA to urge the government to reconsider its tax policy, and to argue that changes could help create 5,000 jobs in 2012. BBPA figures show that beer sales support around 1m jobs and generate nearly GBP8bn (USD12.6bn) in tax revenues.
Beer duty was increased by 7.2% in Chancellor George Osborne's March 2011 Budget. The total increase in beer duty since March, 2008 stands at 35.4%. The BBPA maintains that the industry's decline could be halted - and thousands of jobs saved - if the government abandons what it believes are damaging plans for additional, above-inflation rises in beer tax in the March Budget. The government’s beer tax ‘escalator’ policy means increases of 2% above inflation until 2014/15.
Brigid Simmonds, Chief Executive of the BBPA, commented: “The decline in beer sales has slowed, but these figures show the sector cannot afford another round of inflation-busting, beer tax hikes in the Budget. This will delay any potential recovery in an iconic and economically vital British industry. A change of course, giving brewers and pubs a chance to invest and expand their operations, could create over five thousand jobs in 2012 which should be a great year for British beer and pubs with the Queen’s Jubilee, [the] Euro 2012 [soccer championships], the Olympics and Paralympics. These events could provide a real boost for the UK economy and boost employment - but this will only be possible if the government reverses planned tax increases and damaging over-regulation.”
Earlier this month, leading pub chain JD Wetherspoon joined the campaign to lower the rate of value-added tax (VAT) charged in pubs and restaurants from 20% to 5%. Releasing its latest interim figures, Wetherspoon argued the government must act on this as a priority, in order to maximise job creation and tax revenue. The chain argued that, with supermarkets not required to pay VAT on food, and with similar businesses in Ireland and France facing lower tax rates, the UK's pub and restaurant industry is at a disadvantage.
The VAT Club campaign is led by French lobbyist Jaques Borel, and big names including the British Hospitality Association, the British Association of Leisure Parks, Piers & Attractions, the Federation of Small Business and the Tourism Alliance are also involved.
Osborne will deliver his 2012 Budget on March 21.
30 Jan 2012
Taxes Killing The British Pub
8 Dec 2011
BBPA calls for rethink on Diamond Jubilee pub opening hours | 6 December 2011 | Stock Market Wire
The Government must ensure that the people of Britain are able to give Her Majesty the Queen the massive national ‘thank you’ she so richly deserves on the Diamond Jubilee next June – by letting pubs open for extended hours on Sunday and Monday on the special, double bank holiday.The government consultation, just closed, on the issue suggests that extra hours will be allowed for Friday and Saturday – but with the huge celebrations likely to continue on the Monday, given the extra bank holiday on Tuesday, the British Beer & Pub Association (BBPA) wants the extra hours moved to Sunday and Monday instead. This would make pubs the heart of the national holiday celebrations, just as they were for this year’s Royal Wedding.
Extra hours on Friday and Saturday would be too much ‘business-as-usual’, says the BBPA, and not covering Sunday would cause particular problems, given that many pubs still close early on Sunday under their existing licences.
Brigid Simmonds, BBPA Chief Executive, comments:
“It’s hard to imagine a more special event in the life of Britain than the Queen’s Diamond Jubilee – and pubs should be at the heart of the celebrations, without the red tape around late opening hours.
“The Government is right to recognise the need for extra opening hours, and extra hours worked brilliantly for the Royal Wedding with no problems - pubs really do need the same for the Jubilee Sunday and Monday evenings."