Get the latest hospitality news and inspiration straight to your inbox. Subscribe to our newsletter.

Government losing millions in beer tax payments despite hikes in duty

Written by:
Government losing millions in beer tax payments despite hikes in duty
Written by:

The Government received £174m less beer tax in the first nine months of 2009, compared to the same period last year, despite huge hikes in the duty that were designed to bring in more revenue, research reveals today.
The latest UK Quarterly Beer Barometer, published by the British Beer & Pub Association (BBPA), reveals that 4.3 million fewer pints were drunk each week during July, August and September, a 4.7% fall on the same period in 2008.
The figures mean that monies collected from beer tax in the first nine months of 2009 are down £174m, despite the 8% rise in duty announced in the Pre–Budget Report last December, the BBPA said.
Nevertheless, the figures for the quarter show that sales of beer are beginning to stabilise, with the 4.7% drop the second lowest rate of decline since the first quarter of 2007.
Brigid Simmonds, BBPA chief executive, urged the Government to hasten this recovery by cancelling the 8% beer tax hike when VAT returns to 17.5% in January.
“These latest figures signal that overall beer sales are beginning to stabilise, but beer sales in pubs continue to decline,” she said. “This is a fragile situation, that could well be jeopardised by the wrong decisions on tax in the forthcoming Pre-Budget Report.
“Government should announce that when VAT goes back up in January, it will cut the 8% tax increase it put on beer in the Pre-Budget Report last year, which coincided with the VAT decrease. This would be revenue neutral for Government and a boost to beleaguered pubs.”

Decline in pub beer sales shows signs of ‘stabilising’ >>
Alcohol consumption falls by fastest rate in 60 years >>
BBPA defends its new code of practice for pubcos >>
Greene King to quit British Beer & Pub Association >>

By Daniel Thomas

E-mail your comments to Caterer News here.

If you have something to say on this story or anything else join the debate at Table Talk – Caterer’s new networking forum. Go to jobs

Looking for a new job? Find your next pub job here with jobs


Blogs on
Catch up with more news and gossip on all Caterer’s blogs
For the latest hospitality news, sign up for our e-mail newsletters.

Start the discussion

Sign in to comment or register new account

Start the working day with

The Caterer’s free breakfast briefing email

Sign up now for:

  • The latest exclusives from across the industry
  • Innovations, new openings, business news and practical advice
  • The latest product innovations and supplier offers
Sign up for free