BUDGET DECISION 2018
On October 29th, the Chancellor listened to 116,000 pub goers and announced a beer duty freeze. This was a positive move and shows that the Government recognises the social, cultural & economic importance of local pubs. The decision not only provided some of the much needed support for local pubs and the communities they serve, but it will also protect over 3,000 jobs*
However, the Government has year-on-year RPI linked increases to Beer Duty planned, so signatures on the 2019 petition are essential to ensure the freeze wasn’t a one-off action and that the Government continues to protect our valuable pubs and breweries.
So why cut beer tax? The simple answer; in the UK, Beer is overtaxed.
The UK has one of the highest Beer Duty (tax) rates in Europe, and is three times the EU average. The government collects £3.5 billion every year in Beer Duty, as well as almost £10 billion in other taxes on pubs and brewers. Today one in every three pounds spent in pubs goes to the taxman
Along with Business rates and VAT, Beer Duty is putting pubs under enormous pressure; every day pubs are closing their doors for good.
And it’s getting worse.
The government government increased Beer Duty in 2017 and froze it in 2018, with year on year RPI linked increases planned it’s likely that Beer Duty will increase by at least 3% every year for the foreseeable future.
The last time Beer Duty increased year on year was between 2008 and 2013 when the government put a Beer Duty escalator in place. The impact on the beer and pub sector was catastrophic, within 5 years there was a 24% decline in beer sales, 5,000 pubs closed and 58,000 people lost their jobs.
So now we need to fight.
Pubs have been at the heart of our culture for generations and remain one of our most valuable assets. The pub and brewing industries combined create jobs, encourage tourism, and most importantly provide a vital place for communities to gather.