Sales of British beer fell by 1% in 2016, prompting renewed calls from the industry for a one penny cut in beer duty in the Budget on March 8. The fall means that 78 million fewer pints of beer were sold in 2016 compared to the previous year.
Overall, however, sales in the past three years have stabilised after years of sharp decline, says the British Beer and Pub Association (BBPA), a trend greatly helped by three one-penny cuts in beer duty from 2013 to 2015, and a freeze last year.
Prior to 2013, there was a slump of 14% in sales under the controversial beer duty escalator, when a tax hike of 42% from 2008- to 2013 was accompanied by 58,000 job losses and 7,000 pub closures.
In order to safeguard jobs, pubs and investment, the current trends make it essential that the government does not revert to beer tax hikes, as currently planned, in the Budget, says the BBPA.
BBPA chief executive, Brigid Simmonds, said: “Whilst, overall, beer sales have stabilised following years of sharp decline under the beer duty escalator, these latest figures show that more action is needed to ease the tax burden on brewers, pubs and pub-goers.
“For the Budget, the government has currently earmarked a tax rise for beer, but this would begin to undo much of the great work done in recent years, with three duty cuts and a freeze, from 2013.
“Recent Budgets have shown that reducing beer duty is a low-cost, targeted measure, that can make a real difference. Beer duty is now 17% lower than it was due to be under the escalator. However, our tax rates are still the third highest in the EU and far higher than in neighbouring countries. The Chancellor can safeguard pubs, and protect jobs and investment, with a further one penny cut in the Budget on March 8.”
