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Morning Briefing for pub, restaurant and food wervice operators

Mon 23rd Feb 2015 - Camra – 1,047 pubs saved by beer duty cuts
Camra – 1,047 pubs saved by beer duty cuts: The Campaign for Real Ale (Camra) is calling on the Chancellor of the Exchequer to cut beer duty for a historic third time in next month’s Budget, as a new report estimates 1,047 additional pubs would have closed if the government had not scrapped the beer duty escalator and cut beer duty in 2013 and 2014. Camra said a third cut in beer duty would allow the industry to continue to recover, with beer drinkers, publicans and brewers across the UK all likely to benefit and be raising a glass to the Chancellor once more. The new report, produced by the Centre for Economic and Business Research, estimated that the effects of the Chancellor's actions were: over a thousand pubs saved – an additional 1,047 pubs would have closed by the end of 2014 if the Beer Duty Escalator had remained in place; 750 million more pints sold – 750 million fewer pints of beer would have been sold in the UK this financial year if the Beer Duty Escalator had remained in place; 26,000 jobs created – 26,000 additional jobs would not have been created if the Beer Duty Escalator had remained in place; higher investment – in 2014 alone, investment in the brewing industry was expected to stand at £61m higher than it would have if the beer duty escalator had been maintained; the price of a pint up to 16p lower – the average price of a pint of beer, which currently stands at £3.04, would have cost £3.20 if the beer duty escalator had not been scrapped and replaced by two consecutive 1p cuts in 2013/14. Tim Page, Camra’s chief executive, said: “It is fantastic to see that the beer duty cuts have had a real impact on beer drinkers and pub goers across the country, beyond keeping the lid on the price of a pint and keeping pubs open. Without these measures, fewer people would be able to afford a regular pint in their local pub, and yet more pubs would have closed. Reductions in beer tax have helped keep pubs open, created new jobs and kept increases in the cost of beer at a historic low. Camra is calling on the Chancellor to keep consumers in mind and cut beer duty for a third time next month. In addition, we would like to see brewers and pub companies pass on this cut in full so that pub-going remains an affordable activity. At a time when there is concern about the number of people drinking excessively at home, the importance of pubs as places where you can drink responsibly in a social and community setting cannot be overstated.”


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