- 870,000 jobs supported by beer and pubs, 44 per cent of which are under 25s
- £21.7 billion contribution to the economy in Gross Value Added (GVA)
- Great opportunity for third cut in beer duty, says BBPA
There is growing evidence of the compelling case for a third, historic cut in beer duty in the Budget, as a new report shows that that an astonishing 870,000 jobs depend on British beer and pubs – and almost half (44 per cent) are younger workers under 25.
The new report, by economic experts Oxford Economics for the British Beer & Pub Association, also finds that the industry adds almost £22 billion to the economy each year, and already pays an astonishing £10 billion in headline taxes.
The industry brings “significant economic benefits to the national economy”, says the report It finds that brewing itself sustains over 100,000 UK jobs, but it is in pubs where the jobs impact is most felt, with 770,000 jobs supported by the nation’s 48,000 pubs.
The report also shows the astonishing tax haul from the industry, of £13 billion per year, through beer and other excise duties, VAT, income tax, corporation tax, and business rates.
Writing in the report, Adrian Cooper, Chief Executive Officer Oxford Economics, says:
“Our analysis confirms that the UK beer and pub sector continues to be an important source of employment and output at a national and local level. Its activity generates a significant amount of tax contributions, investment and opportunities for young people to enter the labour market.”
Brigid Simmonds, BBPA Chief Executive, comments:
“Our sector supports 870,000 vital jobs, and it is particularly important that we can go on boosting employment, especially for younger people. Two historic beer duty cuts have brought huge benefits. In 2014, beer sales rose, after years of decline, and employment was boosted by 16,000. The Chancellor has a great opportunity to build on this success in the Budget on 18th March, with a third duty cut.”
Notes to editors:
Local impact of the beer and pub sector – read the full report here
For the new joint BBPA, SIBA, CAMRA, Pubs of Ulster ‘Beer Story – Facts on Tap’ leaflet and infographics, see http://www.beerandpub.com/thebeerstory
More on the economic benefits of the two beer duty cuts in the BBPA’s Cheers 2014 report here.
Beer, pubs and Budget 2015 – key facts:
- The beer and pub sector supports 870,000 jobs – 44 per cent are under 25s
- 82 per cent of the beer sold in Britain is made in Britain
- One job in brewing generates 18 jobs, in pubs, one in agriculture, one in the supply chain and one in retail.
- Pubs rely on beer sales – seven in every ten pub drinks sold is beer.
- Under the beer duty escalator (2008-2013) beer tax rose by 42 per cent. During this period, 7,000 pubs closed and 58,000 jobs were lost.
- The two, one penny beer duty cuts have secured 16,000 jobs.
- After years of above inflation tax rises, beer taxes are still too high. Britons pay 40 per cent of all EU beer duties, but drink just 12 per cent of the beer.
- Beer prices increases in pubs are at their lowest since the 1980s.
The British Beer & Pub Association is the leading body representing Britain’s brewers and pub companies. The Association is more than a century old and was originally founded as the Brewers’ Society in 1904. Our members account for some 90 per cent of beer brewed in Britain today, and own around 20,000 of the nation’s pubs.