Beer sales in the first quarter of 2016 were 1% down on the same quarter in 2015, according to the latest Beer Barometer sales data from the British Beer & Pub Association.

BBPAThe fall was the smallest first quarter drop since 2008, giving further signs of more stability in the market, following years of decline accompanied by sharp rises in the tax on beer, which rose by 42% from 2008 to 2013.

Three successive beer duty cuts from Budget 2013, and a freeze in this year’s Budget, have helped to build confidence in the industry, said association chief executive, Brigid Simmonds.

Greater sales stability was particularly noticeable in the on-trade, which fared relatively better than the off-trade, with a drop of 0.2% on Q1 2015, while off-trade sales fell by 1.8%. The very small, on-trade drop in volumes was the smallest decline in sales seen in Q1 since 2002.

Increased confidence in the sector is being spurred by innovation and investment, and through promotional campaigns.

Brigid Simmonds said: “Beer sales are certainly doing better overall, and there are good prospects for Q2, with Euro 2016 and the Queen’s 90th birthday celebrations a key draw for pubs. To avoid any return to the sharp declines in sales of recent years, we will need continued focus from the Government on the tax burden, not just on beer, but also on pubs, through a fairer business rates regime and other burdens on small business.”