Brewers Push for Alcohol Duty Reduction
Brewers across the UK are urging policymakers to lower the elevated alcohol duty on draught beer, effective immediately as rates climb for the first time since 2017. Despite recent measures to ease business rates for pubs, persistent high taxes on alcohol continue to challenge the nation’s beer sector, industry experts warn.
The duty on beer rises by 3.7 percent today, adding an estimated £130 million annually to operational costs for brewers. This escalation intensifies pressures on pubs and breweries already grappling with closures and financial strain.
Industry Leaders Advocate for Change
Andy Slee, director of the Small Independent Brewers Association (SIBA), which supports over 700 independent producers, calls for a reduction in duty on pub-served pints. He argues that such a move would stimulate business growth, foster job creation, and enable investments in venues.
Slee emphasizes expanding draught relief—a policy introduced to lessen duty on pub drinks compared to supermarket sales. Recent SIBA data indicates that three breweries shut down weekly in the UK over the past year, underscoring the sector’s vulnerability.
Slee also presses for a comprehensive reform of the business rates system, as outlined in recent Treasury announcements. Current proposals from Chancellor Rachel Reeves, set to raise bills for retailers, restaurants, and hotels starting in April, have drawn sharp criticism from publicans.
Broader Implications for Pubs and Prices
Publicans highlight that while the business rates adjustment offers some support, it falls short amid rising National Insurance contributions, minimum wages, and now beer duties. These factors collectively threaten the survival of many establishments.
Emma McClarkin, chief executive of the British Beer and Pub Association, states that the changes heighten the risk of price increases, a outcome that brewers and publicans aim to avoid for their patrons.
