The Rt Hon Sajid Javid
Chancellor of the Exchequer
HM Treasury
1 Horse Guards Road
London SW1A 2HQ
13th January 2020
Dear Chancellor,
I am writing to you about beer duty ahead of the forthcoming budget on March 11th. Pubs provide a source of employment and sense of community for many constituencies across the UK, including my own, but the tax on beer has been proven to be detrimental to the pub industry.
The duty escalator instituted in 2008 led to big losses for the pub industry - by 2013, 58,000 people had lost their jobs and 7,000 pubs closed as a result. This is harmful to national and local economies. The brewing industry generates £23 billion for the UK economy each year. Pubs are also the 3rd big tourist attraction in the UK, making them an essential part of tourism revenues. Furthermore, increased investment in the pub industry can improve youth unemployment - 18-24-year olds make up 44% of the workforce in pubs and bars.
Pubs are also essential to local communities. The pub industry has been valued at as much as £100,000 per year to local economies. Latest research predicts the loss of 20,000 jobs in the next five years if a beer duty increase goes ahead. Moreover, the Alcohol Health Alliance has found that a one size fits all approach to taxation has helped supermarkets to undermine pub sales and increase their alcohol revenue, while failing to reduce pub closures.
Pubs face a range of tax pressures, including beer duty, Business Rates and VAT. with one in every three pounds spent in a pub going straight to HMRC - that's an average of £140,000 per pub per year. Beer duty is putting an unfair burden on these local businesses. Whilst pubs are about far more than having a beer, seven out of 10 alcoholic drinks sold in a pub are beers, so beer duty has a significant impact on our local pubs.
Your Government’s recent Queen’s Speech included a commitment to support small businesses, yet beer duties put immense pressure on small businesses, often forcing small and medium-sized pubs to go out of business. On the other hand, recent cuts to the duty resulted in reinvestment in the pub industry of £4.9 million..
Please back local pubs in Brighton Pavilion and elsewhere, and cut beer duty to support local pubs and the communities they serve.
Yours sincerely,
Join The Discussion