Local pubs face an astonishing annual bill from the Government of over £122,000 each, according to new figures published by the British Beer & Pub Association. The figures feature in a new publication, ‘The Pub Story’, published 5 March by the BBPA (see here).
£33,000 beer/alcohol duties + £12,500 business rates
Beer and other alcohol duties land a typical pub with an eye-watering cost of £33,000, with business rates coming in at £12,500 per premises. With pubs still under pressure, the BBPA says that as a minimum, a freeze in beer duty in the Budget on 19 March is the most immediate way the Government can tackle the problem.
Beer sales account for two thirds of all alcoholic drinks’ sales in pubs, says the association, and pubs have a unique and special link with Britain’s brewing industry, as the route-to-market for Britain’s thousands of iconic, locally-produced beers.
+ VAT £66,000 + ‘other’ £10,700 = £122,000
VAT is £66,000 and a host of other taxes and regulatory costs brings the total bill to £122,200. The BBPA has also asked the Government to examine steps it can take to reduce the impact of VAT on the hospitality industry.
While the Government implemented a highly-successful and historic cut in beer duty last year, UK duty remains among the highest in Europe. Duty rose by 42 per cent from 2008 to 2013, and is now an astonishing 12 times higher than in our large neighbour, Germany. Over 100 MPs have now signed an Early Day Motion supporting an industry-wide campaign for more action on beer duty.
Brigid Simmonds, BBPA Chief Executive, comments:
“These new figures show the financial burden that excessive taxes and regulation place on pubs. This Government has shown that it understands the scale of the problem, but more action on taxation is needed, and action on beer duty, in the Budget on 19 March, is the best place to start.”