The British Beer and Pub Association (BBPA) is issuing an urgent call for government action ahead of the upcoming Budget.
With 50 pubs closing each month in England and Wales, key brewing and pub leaders warn that without a beer duty cut and critical business reforms the beer and pub sector, a cornerstone of the UK economy and culture, pubs could close and it may be the end of the affordable pint.
In a letter signed by 80 senior figures from the brewing and pub sector the BBPA reminds the Chancellor of the industry’s £34.4 billion contribution to the UK economy. The sector generates £18 billion in taxes, while supporting more than one million jobs nationwide.
But, says the letter, despite this huge contribution to the Exchequer, soaring business costs are forcing many pubs to close. Since 2010, a fifth of UK pubs have been forced to shut down, with beer volumes dropping by around 10% in the same period.
The BBPA represents nearly half of the nation’s pubs and breweries producing 90% of the UK’s beer.
The letter said: “Our industry faces a cost of doing business crisis. We know ministers are aware of our challenges; we have highlighted them clearly in our representations to government and it is why the five-point plan for pubs was devised on the campaign trail. If that plan is not delivered, we will see pubs close and the end of the affordable pint. When a pub struggles to survive, it cannot continue to be the beating heart of a community, keep employing staff, or contribute to economic growth.”
An Unfair Tax Burden
Despite recent freezes, UK beer duty remains nearly three times the European average, further compounding the financial struggles of the industry.
Pubs are disproportionately burdened by business rates, paying up to five times more relative to turnover compared to other sectors. The BBPA is advocating for an extension of the current 75% business rates relief, which has saved many pubs from permanent closure and a cut in duty.
The letter said: This is an historic low and the industry simply cannot afford other costs, let alone tax increases. Put plainly, for thousands of pubs and brewers across the country there is nothing left to give.
“Pubs and brewers contribute to the fabric of British life. Beyond their economic role, they are hubs of social cohesion, where communities come together. The Chancellor must recognize this in her upcoming Budget and ensure we do not lose more of these essential businesses.”
Cumulative Pressures Threaten Sector Survival
The letter to the Chancellor highlights several urgent challenges, including the projected fees associated with the Extended Producer Responsibility scheme, which is the equivalent increase in duty on glass bottles by 7-14%.
In addition, the proposed ban on outdoor smoking in pubs, which risks driving customers away, an anticipated rise in the National Living Wage, along with skyrocketing energy bills, all threaten to further erode pub profitability.
“The cumulative impact of these pressures cannot be underestimated. Each government-imposed measure adds to an already overwhelming cost burden, stifling growth and driving pubs out of business,” the BBPA letter explains.
The BBPA is urging the government to freeze beer duty beyond February 2025, cut duty rates over time to align with European averages, and maintain the current business rates relief until comprehensive reforms are implemented. Failure to act could result in widespread pub closures and a loss of local jobs, ultimately harming the very communities pubs have long supported.