The British Beer & Pub Association (BBPA) has urged the government to freeze beer tax in next month’s budget to give the industry a boost.
The BBPA has also called for the beer duty escalator that sees alcohol taxes increased by 2% above inflation every year to be scrapped, a move that could save 10,000 jobs and create an extra ?40m in tax revenues.
Brigid Simmonds, the BBPA CEO, said: ‘The government needs to recognise the vital role that Britain’s beer and pub sector plays in the economy, and call time on further, punitive tax increases.
‘As the beer escalator is predicated on two per cent above inflation, we could see a rise of 7% in the tax on beer.
‘When the duty escalator was first introduced inflation was considerably lower. Beer accounts for 60% of drinks sold in pubs, so fairer beer taxation is vital to their survival.’