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Pubs to pour £3.3 billion into the UK economy this Christmas

16 December 2024 By Sophie Arundel

With 300 million pints expected to be sold in December, the UK beer and pub sector is set to provide a festive boost to the economy.

The festive season is shaping up to be a record-breaking one for British pubs, with nearly 300 million pints anticipated to be poured throughout December, according to the British Beer and Pub Association (BBPA). This surge in seasonal trade is forecast to pump £3.3 billion in Gross Value Added (GVA) into the UK economy, highlighting the vital role pubs and brewers play in supporting both communities and national coffers.

The data follows other recent reports from the BBPA suggesting 2024 will also be a record year for no-and low-alcohol sales in pubs.

December is traditionally the busiest month for the beer and pub sector, accounting for 9.5% of annual beer sales. The BBPA projects that pint sales alone could reach a turnover of £1.4 billion, with the average pint now costing £4.80. This would yield an estimated £136 million in beer duty, contributing to the Treasury’s expected £1.7 billion tax windfall from the sector in December.

However, behind the seasonal cheer lies a sobering reality for publicans. Despite the roaring trade, rising costs mean the average pub makes a slim profit of just 12p per pint sold.

Emma McClarkin, chief executive of the BBPA, underscored the precarious position many venues face. “Month in, month out, but most of all at Christmas, beer and pubs pour billions into the UK economy and Treasury,” said McClarkin. “These figures highlight just how much our sector boosts the economy, but also what little money is left over. We’re working with Government to make sure they cut the cost of doing business so we can help deliver their growth mission, continue to be a pillar of the economy and job market, and remain at the heart of communities.”

The beer and pub sector supports over one million jobs across the UK and last year contributed an impressive £34.4 billion in GVA. But with the cumulative impact of recent tax and budget changes, the BBPA warns the sector faces a £650 million rise in business costs, threatening investment, employment, and the survival of community pubs.

The BBPA is urging the Government to prioritise meaningful business rate reforms and provide long-term support for the industry. Proposed changes to employment costs are also under scrutiny, with the association calling for better timing to allow businesses to plan and retain vital staff.

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