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Sector supports 44,000 jobs in Wales
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Despite being the backbone of the UK job market, pubs make just 12p a pint
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BBPA warns that without Government support jobs could be at risk
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A 5% cut in beer duty in the upcoming Budget would result in up to 12,000 additional jobs across the UK, mainly in pubs
Britain’s beer and pub sector supports 44,000 jobs across Wales but urgently needs the upcoming Budget to help it so it can keep people in work, the trade body has warned.
These figures demonstrate that people around the country depend upon the industry to keep them in work and put money in their pockets, the British Beer and Pub Association (BBPA) said.
But despite this, pubs make an average of just 12p on every pint of beer once taxes and costs have been deducted.
Now the BBPA is calling for a reduction in soaring costs of doing business. It says the industry needs the Budget to help it continue to invest in business and people and remain a home away from home in communities across the country.
Emma McClarkin, CEO of the BBPA, said: “Our brewers and pubs are helping people around the country earn money, gain skills and experience, and support both the local and national economy.
“From those pulling pints to the farmers growing the hops, so many rely on our treasured beer and pub sector for their livelihoods and careers.
“But for the job market to flourish – and for us to keep supporting those jobs – it’s vital our sector is given the support it needs to continue.
“We are urging the Government protect the Great British brewing and pub sector – the beating heart of our communities – to ensure it can remain a driving force for growth, jobs, investment and social value whilst keeping the price of a pint affordable for all.”
The BBPA is calling on the Government to use the upcoming Budget to cut beer duty, reform business rates, and pledge to keep the 75% business rates relief so that pubs and brewers can keep people in work and support more jobs.
A 5% cut in beer duty in the upcoming Budget would result in up to 12,000 additional jobs across the UK, mainly in pubs. This is due to the dynamic effects of increased prices at the bar reducing demand from consumers, who are sensitive to costs rising. Decreased demand for drinks in pubs leads to closures and job losses so keeping the price of a pint affordable will allow the sector to thrive and employ even more people.
The industry is facing multiple burdens and restrictions in the form of proposed eyewatering packaging taxes and a potential beer garden smoking ban.
The industry is one for the most heavily taxed business sectors per pound of turnover in the UK with tax making up 40% of UK brewing turnover and £1 in every £3 spent in pubs.
The BBPA warns any additional price increases, on top of the inflationary pressures of the last few years, would tip many beer and pub businesses over the edge.
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