The “right tax policies” needed to boost British beer sector

Beer sales in Britain for the last 12 months are up 1.5% year-on-year at the end of the first quarter of 2015.

However, a closer look shows that sales in the first quarter are 0.8% are down on the same period in 2014.

The figures are reported in the latest ‘Beer Barometer’ from BBPA, which demonstrates that such growth follows nine consecutive years of decline.

The BBPA cites major tax rises, including the “devastating” beer duty hike of 42 per cent from 2008 to 2013.

At the time, this sent the average duty on a pub pint, in addition to the VAT on the duty, from 38p to 56p. Unsurprisingly, this period bore witness to 7,000 pubs closing with 58,000 jobs lost as a result.

According to BBPA chief executive Brigid Simmonds a historic hat-trick of beer duty cuts have helped stabilise the sector and safeguard the future of many of Britain’s pubs.

Simmonds explained: “The market is still fragile as the industry continues to recover from the damaging beer duty escalator and UK beer duty rates remain among the highest in the EU.

“That is why we need the right tax policies so we can continue to boost jobs and create investment in an industry that employs 900,000 people and is worth £22 billion to our economy.”

For the full interview with Simmonds, read the first issue of The Brewer’s Journal in September.

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