New alcohol consumption figures prove the need for beer duty freeze, says BBPA

9th March 2011, 10:23am

New figures for UK alcohol consumption for 2010 revealed that the amount we drink remains lower than it was 10 years ago, with consumption continuing to flat-line, according to data based on HMRC alcohol tax returns analysed by the British Beer & Pub Association (BBPA).

Beer producers say that after over a decade of unfavourable tax treatment for beer, the new consumption figures add to the "overwhelming case" for the Government to end the beer duty escalator, and freeze beer duty in the 23rd March Budget.

The BBPA also says that when it comes to this week's call from the Chancellor for policies that support UK manufacturing, he could hardly pick a better place to start than Britain's brewing industry, with its unique variety of British-based products. 

While total alcohol consumption per head rose slightly in 2010 (up 0.6% following last year's 6.1% decline), beer consumption per per head fell by 1.9% whereas spirits rose by 4%, and wine by 1.1%. 

The BBPA adds that current taxation policies, which encourage consumers to switch from beer to stronger drinks, also have a negative effect on jobs, as beer is largely UK-produced, and typically enjoyed in the labour-intensive and high-service pub sector. 

The BBPA says that a freeze in beer duty this year would create a 'win-win' situation that would nudge consumers towards lower-strength drinks and boost the brewing and pub industry, creating employment and investment in the UK economy and generating more money for the Treasury.

Brigid Simmonds, BBPA Chief Executive, commented: "With total alcohol consumption nearly 12% lower per head than in 2004, these figures show that we need to look beyond the headline figures when it comes to shaping alcohol policy.

"Scrapping plans for further rises in beer duty in the Budget, would also send a signal on encouraging consumption of lower-strength drinks, and crucially at this time, this could also save over 10,000 UK jobs, protecting Treasury revenues, and stop several more pence being added to the price of a British pint, further hitting UK consumers.  

"The Government says it wants to champion pubs, and herald a great UK manufacturing revival. Our brewing industry is the perfect place to start."

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• 19 Jan 2011 - Beer taxes already among highest in the world, warns BBPA
• 01 Sep 2010 - Fair deal for beer would create 30,000 new jobs, says BBPA
• 21 May 2010 - Pub beer sales drop by 8.8%, says BBPA
• 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
• 31 Aug 2009 - BBPA publishes statistical handbook
• 29 Jul 2009 - Beer sales are beginning to improve, says BBPA
• 02 Apr 2009 - Gap in the market for organic beer
• 10 Mar 2009 - BBPA chief steps down after 10 years
• 02 Mar 2009 - New poll shows public are backing local pubs
• 19 Sep 2008 - BBPA chief hits back at sweeping generalisations
• 06 Aug 2008 - BBPA comments on alcohol policy
• 15 Feb 2008 - BBPA proposes tax freeze on beer

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