One thousand pubs saved by beer tax cuts

The Campaign for Real Ale (CAMRA) has strengthened its calls for a beer tax cut “hat-trick” as new research reveals that more than 1,000 pubs have been saved by two previous cuts.

CAMRA is calling on the Chancellor to cut beer duty for a historic third time in next month’s Budget, as a report published today by the Centre for Economic and Business Research estimates 1,047 additional pubs would have closed by the end of 2014, if the Government had not scrapped the beer duty escalator and cut beer duty in 2013 and 2014.

CAMRA says a third cut in beer duty would allow the industry to continue to recover, with beer drinkers, publicans and brewers across the UK all likely to benefit.

The report also says 750 million fewer pints of beer would have been sold in the UK this financial year if the Beer Duty Escalator had remained in place, while 26,000 additional jobs would not have been created.

Furthermore, the average price of a pint of beer, which currently stands at £3.04, would have cost £3.20 if the beer duty escalator had not been scrapped and replaced by two consecutive 1p cuts in 2013/14.

Tim Page, CAMRA’s chief executive said: “It is fantastic to see that the beer duty cuts have had a real impact on beer drinkers and pub goers across the country, beyond keeping the lid on the price of a pint and keeping pubs open. Without these measures fewer people would be able to afford a regular pint in their local pub, and yet more pubs would have closed. Reductions in beer tax have helped keep pubs open, created new jobs and kept increases in the cost of beer at a historic low.

CAMRA is calling on the Chancellor to keep consumers in mind and cut beer duty for a third time next month. In addition, we would like to see brewers and pub companies pass on this cut in full so that pub-going remains an affordable activity. At a time when there is concern about the number of people drinking excessively at home, the importance of pubs as places where you can drink responsibly in a social and community setting cannot be overstated.”