Tax rises will result in pub job losses

8th April 2009, 12:14pm

The British Beer and Pub Association (BBPA) has warned that up to 60,000 jobs will be lost over the next five years if the planned beer tax increases go ahead in this year's Budget.

In a report, "People, pubs and Parliament: A new deal for Britain's beer and pub sector", the BBPA describes the current economic climate as among "the toughest trading conditions in living memory" - and calls on the Chancellor to rethink plans set out 12 months ago to impose a "punitive" tax escalator for the next four years.

The report outlines the "severe and sustained" pressures facing an industry that employs 600,000 people and supports a further 550,000 jobs in the UK, generating an estimated £28 billion in economic activity.

Key statistics include:

• 59,000 jobs are projected to be lost over the next five years
• Total beer sales are down by nine million pints a day since 1979
• Beer sales in pubs are now at their lowest level since the 1930s
• Pub closures now stand at six a day or 39 a week
• Beer duty was increased twice during 2008 by a total of 18%

Commenting on the report, David Long, the BBPA's Chief Executive, said: "This report sets out clearly the exceptional pressures the beer and pub industry is facing at this time. Pubs are closing at a record rate and one in ten of the 600,000 jobs in the sector are under threat as a result of the worst trading conditions anyone can remember.

"This dire situation is driven by many factors, but the Government is adding to the misery through punitive increases in tax and regulation. Last year, the Chancellor increased beer tax by 18 per cent and also set out plans to impose a duty escalator of above-inflation taxes in each of the next four years. His justification was that duty should rise in line with rising incomes.

"Twelve months on from the last Budget the economic situation has changed radically. While average earnings were rising by almost five per cent in March last year, today they are actually falling. The Chancellor must now think again.

"Pubs play a vital economic and social role in all parts of the UK, and yet the industry was excluded from the VAT cut in November, is being burdened by more and more regulation, and now faces further tax increases in the Budget. The result will be to write off thousands more pubs and tens of thousands more jobs."

The BBPA and the Campaign for Real Ale's "Axe the Beer Tax, Save the Pub" campaign has had a massive public response with 70,000 supporters signing up since the end of last year.

Almost 25,000 people have lobbied their MP on the beer tax issue, and 202 MPs – including 97 Labour backbenchers - have signed up in support of the campaign.

Related Articles:

• 31 Aug 2009 - BBPA publishes statistical handbook
• 01 Jun 2009 - New figures show UK near top of EU beer tax league
• 14 May 2009 - Unite supports pub beer supply investigation
• 13 May 2009 - MPs call for inquiry into 'beer tie' activity
• 28 Apr 2009 - Beer sales continue to slide
• 22 Apr 2009 - Industry react angrily to the Budget
• 20 Apr 2009 - 90% of public want taxes reduced or frozen in Budget
• 15 Apr 2009 - MPS oppose beer tax rise
• 13 Apr 2009 - 'We will not punish those who drink responsibly'
• 31 Mar 2009 - Sun advert launches 'Text the Chancellor' campaign
• 13 Mar 2009 - Taxation on pubs has gone too far, says Wetherspoon
• 12 Mar 2009 - 30,000 people support local pubs
• 09 Mar 2009 - Job losses at fastest rate in over 10 years
• 04 Mar 2009 - Record number of pubs closing
• 02 Mar 2009 - New poll shows public are backing local pubs
• 26 Feb 2009 - Tories want to save the great British pub
• 26 Feb 2009 - Drinks industry warns thousands more job losses
• 10 Feb 2009 - Over 100 MPs back the great British pub
• 27 Jan 2009 - Beer sales down by 8.3%
• 10 Dec 2008 - Job losses are an eventuality

Click here to submit a comment!

Have your say!

To comment on this article, simply enter your name and email and send us your views. Please note that your comment will appear publicly below this article once it has been processed. For enquiries please email info@eatoutmagazine.co.uk.