Beer sales slide continues to slow

29th October 2009, 3:10pm

The decline in total UK beer sales has slowed significantly, according to the latest UK Quarterly Beer Barometer published by the British Beer & Pub Association (BBPA).

The new figures show that total beer sales were down by 0.8% on the third quarter. It is also the slowest rate of decline since the first quarter of 2008.

The figures confirm signs that sales are beginning to stabilise, but the BBPA fears that any fragile recovery may be threatened by the VAT increase due in January, which would put a further six pence on a typical pub pint.

Beer tax rose by 8% duty in the Pre–Budget Report last December, cancelling out the 2.5% VAT cut boost enjoyed by other sectors.

The 4.7% fall in pubs means that 4.3 million fewer pints were drunk each week during July, August and September compared with the same period in 2008 – a loss in volume that leaves many pubs under continued pressure, with 52 closures per week.

Brigid Simmonds, BBPA Chief Executive, commented: "Government should announce that when VAT goes back up in January, it will cut the 8 per cent tax increase it put on beer in the Pre-Budget Report last year, which coincided with the VAT decrease. This would be revenue neutral for Government and a boost to beleaguered pubs.

"Beer sales are the backbone of Britain's pubs, which employ thousands, and act as the hub for many communities. We have already suffered beer tax increases totalling 20 per cent in the past two years – a tax increase of £600 million during a record recession. Further punitive tax increases could snuff out any recovery, with further job losses."

Related Articles:

• 02 Jun 2010 - BBPA issues guidance to pubs for World Cup
• 21 May 2010 - Pub beer sales drop by 8.8%, says BBPA
• 23 Mar 2010 - 67% of British public want Government to scrap beer tax increase
• 01 Mar 2010 - BBPA produces guide for pubs during British Tourism Week
• 04 Feb 2010 - Pubs are still closing but at a slower rate, says BBPA
• 28 Jan 2010 - Beer sales could be improving, says BBPA
• 09 Dec 2009 - The VAT increase will add six pence to the price of a pint of beer
• 09 Dec 2009 - Government makes five times more money from beer than pub companies
• 31 Aug 2009 - BBPA publishes statistical handbook
• 25 Aug 2009 - BBPA appoints Brigid Simmonds as new chief executive
• 29 Jul 2009 - Beer sales are beginning to improve, says BBPA

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