A government cut to beer duty by 5% would lead to the creation of up to 13,000 jobs, new research shows.

The British Beer and Pub Association, which revealed the exclusive research by Oxford Economics showing, said creating the right environment to ensure jobs can be created and sustained is the job of Government.

Cutting beer duty is a central ask of the beer and pub industry in the upcoming Spring Budget, along with a cap to the business rates multiplier and a reduction to the VAT charged on non-alcoholic drinks and food served in pubs. The UK’s beer and pub sector is facing a whirlwind of challenges from all angles. This research comes after the recent news that over 500 pubs closed their doors for the final time during 2023.

The combination of stubbornly high energy bills, the third highest beer duty in Europe and no VAT relief for hospitality has forced many to close their doors.

At a time when so many high streets are visibly struggling, pubs are an economic force multiplier in local economies; a thriving High Street is anchored by a thriving pub(s). The industry already supports 936,000 jobs around the UK and contributes £26bn to the wider economy whilst simultaneously generating £15bn in taxes.

The sectors importance for skills and growth is unequivocal,  40% of those employed are 18-24 years old. This generation of trained young staff are developing vital skills in a flexible industry. The loss of pubs is a loss of skills gained for a generation in need of flexible, well paid, social work.

Pubs and Breweries now face even narrower operating margins. With one in three pounds spent at the pub going in taxes and 40% of Breweries turnover being tax. The position for many is unsustainable, which is why setting the optimal fiscal and regulatory framework is critical .

Alun Cairns MP, Chair of the All-Party Parliamentary Beer Group said: “It was wonderful to see beer duty frozen once again at the last Autumn Statement, and the introduction of the Brexit Pubs Guarantee means there will always be less tax on a pint at the pub than the supermarket.

“Britain’s pubs and brewers generate so much value for local economies and communities and it is clear that a cut to beer duty at the Spring Budget can be a driver of economic growth and job creation.”

Emma McClarkin, Chief Executive of the British Beer and Pub Association added: “This new research offers proof that a 5% cut to beer duty can deliver vital economic growth up and down the country. The Chancellor has stated that he is focussing on cutting taxes at the Spring Budget – now he has the proof that cutting beer duty won’t just affect the cost of a pint but will deliver vital economic growth and create jobs.”