Pandemic-linked fall in beer sales prompts call for cut on duty
UK beer sales fell sharply during the Covid pandemic, with many of those who were avoiding pubs choosing to drink wine and spirits at home instead.
The British Beer and Pub Association (BBPA) said pubs and restaurants lost £5.7bn of revenue from beer sales in 2021 alone and called on the government to cut duty to help it recover from the hit of pandemic restrictions.
Chief executive Emma McClarkin also called for taxes to be linked to the strength of the alcoholic drink, with lower-alcohol drinks being taxed less.
She said: “Our analysis showing falling beer consumption supports the Treasury’s stated objective to incentivise lower-strength products and differentiate beer from stronger wine and spirits as part of planned reforms to the alcohol duty system.
“We must again ask ministers to go further and support our recovery by continuing to reduce the punitive tax burden on our sector to ensure the sustainability of brewing and pubs.”
The industry group also analysed alcohol taxes collected from March 2020, when the first lockdowns started in the UK, to October 2021, when some restrictions were relaxed.
It found beer receipts fell by £681m to £5.4bn, while wine receipts increased £583m to £7.7bn and spirits receipts rose £784m to £6.9bn.
The Treasury said is most recent Budget froze beer duty for a fourth year saving brewers £900m, adding that draught relief – aimed at supporting pubs by cutting taxes on their most popular products – would see the duty on a pint fall by 5%.
A spokesman said the government had “comprehensively backed pubs and brewers alike throughout the pandemic” through the furlough scheme, grants, reduced VAT and business rates relief.
