New national alcohol consumption figures show the need for a beer duty freeze, says British Beer & Pub Association
• Total alcohol consumption in 2010 up 0.6 per cent, but beer down 1.9 per cent
• Figures shows need for freeze in beer duty in the Budget
• UK manufacturing revival – beer is the perfect place to start, says BBPA
New figures for UK alcohol consumption for 2010 shows that the amount we drink remains lower than it was ten years ago, with consumption continuing to flat-line, according to data based on HMRC alcohol tax returns analysed by the British Beer & Pub Association.
However, the figures also show a trend away from lower-strength drinks such as beer towards stronger drinks. Beer producers say that after over a decade of unfavourable tax treatment for beer, the new consumption figures add to the overwhelming case for the Government to end the beer duty escalator, and freeze beer duty in the 23rd March Budget.
The BBPA also says that when it comes to this week’s call from the Chancellor for policies that support UK manufacturing, he could hardly pick a better place to start than Britain’s brewing industry, with its unique variety of British-based products.
While total alcohol consumption per head rose slightly in 2010 (up 0.6 per cent following last year’s substantial 6.1 per cent decline), beer consumption per per head fell by 1.9 per cent whereas spirits rose by 4 per cent, and wine by 1.1 per cent.
The BBPA says that current taxation policies, which encourage consumers to switch from beer to stronger drinks, also have a negative effect on jobs, as beer is largely UK-produced, and typically enjoyed in the labour-intensive and high-service pub sector.
The BBPA says that a freeze in beer duty this year would create a ‘win-win’ situation that would nudge consumers towards lower-strength drinks and boost the brewing and pub industry, creating employment and investment in the UK economy and generating more money for the Treasury.
Brigid Simmonds, BBPA Chief Executive, comments: “With total alcohol consumption nearly 12 per cent lower per head than in 2004, these figures show that we need to look beyond the headline figures when it comes to shaping alcohol policy.
“Scrapping plans for further rises in beer duty in the Budget, would also send a signal on encouraging consumption of lower-strength drinks, and crucially at this time, this could also save over 10,000 UK jobs, protecting Treasury revenues, and stop several more pence being added to the price of a British pint, further hitting UK consumers. The Government says it wants to champion pubs, and herald a great UK manufacturing revival. Our brewing industry is the perfect place to start.”