Pub group in beer tax plea

The Government should axe plans to raise beer tax and help save thousands of jobs in the pub sector, the British Beer and Pub Association (BBPA) has said.

Under current plans, beer tax will be increased by 2% above inflation in March. The BBPA has said that beer tax has already risen by 20% since 2008, and believes that some 7,500 jobs could be saved if further increases are scrapped by the Government.

Brigid Simmons, chief executive of the BBPA, underlined the social and economic values of low strength drinks such as beer, adding:

“Beer is an iconic British drink, yet the impact of blunt duty increases has further hit our ability to generate economic activity to help pull Britain out of recession.”

Pub owners have been notably hit during the downturn, with pub group CAMRA reporting a peak of 52 closures a week during 2009. The BBPA estimates that recent tax rises have cost the industry around £600 million since March 2008.