A wealth of pubs, bars and taprooms across the UK are pouring pints at Germany’s lower tax rates today as part of the Drop the Pint Day to highlight the potential benefits of a lower tax on pub beer ahead of the Budget later this month.
The UK has one of the highest rates of tax on pub pints in Europe which is ten times as high as in Germany. Independent research revealed today finds that if the UK had a similar tax level as Germany it could create over 16,000 new jobs.
The research by the Centre for Economic and Business Research (Cebr) shows that it could see 119 million extra pints being poured and boost the economy by £663 million.
The Drop the Pint Day sees 65 venues across the UK reducing their prices on one cask or keg of beer to German tax levels on Friday only. This limited offer will be on a first come first served basis.
It is in support of the Drop the Tap Tax campaign which asks beer drinkers to sign the petition and write to their MP ahead of the Budget on Wednesday 28 October when the Chancellor will make a decision on alcohol tax levels for next year.
The Chancellor has the power to cut tax specifically on beer that is sold in pubs via the hand pulls and keg taps. The so called Draught Relief is currently set at a 13.9% reduced rate. Independent brewers believe that boosting this could create jobs, help grow the economy and give a boost to pubs and breweries across the UK.
“When it comes to supporting breweries and beer, the Germans do it right. They understand the cultural importance and contribution they make to the local communities and therefore have a much lower rate of tax,” said Andy Slee, chief executive of the Society of Independent Brewers and Associates (SIBA) which is organising the campaign.
“This is why pubs, bars and taprooms across the UK will be demonstrating what a lower tax on beer could do for us by pouring beer at German duty levels for the Drop the Pint Day. Getting the Chancellor to Drop the Tap Tax in his Budget would be a win-win for our community pubs, independent breweries and beer drinkers.”
The campaign petition can be found at www.droptaptax.com and publicans, brewers and hospitality venues can download posters and share the petition on social media using the hashtag #DropTapTax. It runs up to the Autumn Budget which will be held on Wednesday 28 October 2026.
The research by the Centre for Economic and Business Research (Cebr) published today shows:
A 90% Draught Relief (similar to German duty rates) would create 16,327 additional full time equivalent jobs in brewing and the ontrade. It would see a £662,751,184 increase in GVA consisting of a £440,843,778 increase in ontrade GVA and a £221,907,406 increase in brewing GVA (excluding duty).
This would result in £234,032,080 in additional employee compensation and £255,587,803 in increased tax take across the supply chain, excluding changes in excise duty. It could see 118,932,801 extra pints sold.
