There is growing evidence of the compelling case for a third, historic cut in beer duty in the Budget, says the British Beer and Pub Association (BBPA) as a new report shows that 870,000 jobs depend on British beer and pubs, with almost half being younger workers under 25.
The new report, by economic experts Oxford Economics for the BBPA, also finds that the industry adds almost £22 billion to the economy each year, and already pays an astonishing £10 billion in headline taxes.
The industry brings “significant economic benefits to the national economy” says the report. It finds that brewing itself sustains more than 100,000 UK jobs, but it is in pubs where the jobs impact is most felt, with 770,000 jobs supported by the nation’s 48,000 pubs.
The report also shows the tax haul from the industry, of £13 billion per year, through beer and other excise duties, VAT, income tax, corporation tax and business rates.
Writing in the report, Adrian Cooper, chief executive officer at Oxford Economics, said: “Our analysis confirms that the UK beer and pub sector continues to be an important source of employment and output at a national and local level. Its activity generates a significant amount of tax contributions, investment and opportunities for young people to enter the labour market.”
Brigid Simmonds, chief executive of the BBPA, said: “Our sector supports 870,000 vital jobs, and it is particularly important that we can go on boosting employment, especially for younger people.
“Two historic beer duty cuts have brought huge benefits. In 2014, beer sales rose, after years of decline, and employment was boosted by 16,000. The Chancellor has a great opportunity to build on this success in the Budget on March 18 with a third duty cut.”
