Beer sales down by 8.3%

27th January 2009, 9:52am

The final quarter of 2008 saw beer sales slump by 8.3% - the highest fourth quarter fall since records began in 1997.

The UK Quarterly Beer Barometer also showed that 2.2 million fewer pints were drunk every day in the last quarter of 2008.

Rob Hayward, chief executive of the Beer and Pub Association explained how these figures are a reflection of the troubles currently being experienced in the industry: "These figures highlight the extreme economic pressures hitting Britain's beer and pub sector. Beer sales are sinking and many pubs are struggling to survive. Pub closures have escalated to nearly six a day. 

"Unfortunately, Government tax policy is only making a difficult situation worse. Due to the Government's tax escalator and VAT policy, we are facing two further tax increases this year alone. By the 2012 Budget, the tax on your pint of beer will have increased by up to 40 per cent from February 2008." 

Sales were also down in supermarkets and off licenses. Sales fell by 6.5 per cent in the final quarter of 2008 compared with 2007. This is the second consecutive quarterly fall in the off-trade. 

The declines have hit the Government's revenues at the worst possible time for the public purse – it is estimated that tax income from duty and VAT is down £181 million since the March Budget, compared with the same period in 2007.

Hayward added: "We are not asking for a tax handout, like other sectors. We just don't want our tax burden to be made worse. When it comes to stimulating the UK economy, the Government should not and must not turn a blind eye to Britain's beer and pub sector. 

"British pub-goers have been hit hard by the Budget and the Pre-Budget Report. In addition to further tax increases, the Government says it wants pubs to pay an extra £300 million this year alone as the cost of introducing a mandatory code of practice. The industry's Axe the Beer Tax – Save the Pub campaign has seen a surge of public support for our beleaguered sector. It's time for The Government to respond to these calls and support a great British industry."

Related Articles:

• 14 May 2009 - Mandatory alcohol code is simply 'more red tape' for pubs
• 08 Apr 2009 - Tax rises will result in pub job losses
• 31 Mar 2009 - Sun advert launches 'Text the Chancellor' campaign
• 18 Mar 2009 - New figures show 3.2% fall in alcohol consumption
• 17 Mar 2009 - Drinks industry leaders meet with the Chancellor
• 12 Mar 2009 - 30,000 people support local pubs
• 10 Mar 2009 - BBPA chief steps down after 10 years
• 06 Mar 2009 - Closed pubs don't pay tax
• 02 Mar 2009 - New poll shows public are backing local pubs
• 26 Feb 2009 - Tories want to save the great British pub

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