THE BEER STORY

Facts on tap
The truth behind taxes, jobs and the future of the industry.
WHAT SHOULD GOVERNMENT DO? HOW BEER CREATES JOBS
1. FREEZE BEER DUTY 2. SCRAP THE ESCALATOR
3. REBALANCE
ALCOHOL TAXATION
A FREEZE IN BEER DUTY WOULD SAVE THOUSANDS OF JOBS
1 JOB IN
SUPPLY CHAIN
1 JOB IN
RETAIL
1 JOB IN
AGRICULTURE
18 JOBS IN PUBS
1 JOB
IN BREWING
GENERATES
TAX
Its time to recognise
the economic and social
value of the Great British
beer and pub industry. A
pint in a pub should not
be an unaffordable luxury.
Beer tax has risen by 42% since its
introduction in March 2008, making
further rises unsustainable. Total beer
tax revenues are now at, as beer sales
have dropped and consumer incomes
have fallen.
Unlike most other countries, the current
UK duty system makes beer the most
expensive type of drink, per unit of
alcohol. The Government should use
the tax system to encourage more
consumers towards lower-strength,
British-made drinks.
= 100 jobs 5,000 jobs saved in 2013/14 10,000 jobs saved by the end of this Parliament (2014/15)
to
Contributing
Boosting
Supporting
Produced by the British Beer & Pub Association (BBPA) in partnership with the Society of Independent Brewers (SIBA) and the Campaign for Real Ale (CAMRA).
For more information please contact David Wilson or Neil Williams on 020 7627 9191 or visit www.beerandpub.com, www.camra.org.uk, and www.siba.co.uk
British Beer & Pub Association, Ground Floor, Brewers Hall, Aldermanbury Square, London, EC2V 7HR.
Manufacturing
G
R
E
A
T BRIT
I
S
H
UK PLC
BEER ESCALATOR:
GOING NOWHERE
UK HAS HIGHER
BEER TAX THAN ALL
ITS EU NEIGHBOURS
BEER DUTY ESCALATOR:
OVER THE TOP Since 2008:
Beer duty has increased by 42%
Beer duty revenue has increased
by only 12%
Beer consumption is down 17%
5,800 pubs have closed
60,000 jobs have been lost
+34m = duty
-2m = total net efect
-3m
-9m
-6m
-18m
JOBS
WHY DO BEER AND PUBS MATTER? BITTER TAX FACTS
Proportion of beer sold in Britain
that is made in Britain
Excise Duty across selected EU States
For every 10 drinks sold in a pub...
Beer is a British product and a
major tax contributor. There are
now over 1,000 breweries in the UK.
Beer duty is now so high that
demand has gone down. Pubs
sell a billion fewer pints per
year since the introduction
of the escalator. With the
escalator set to rise again in
2013/14, the net effect could
result in a 2 million loss to
the Treasury.
In 2008 the Government made
a commitment to above-
ination duty increases on
beer. This is known as the beer
duty escalator and is in place
until 2014/15. Thanks to the
escalator, the average pub pint
now costs over 3.10.
At the heart of every pub is beer, mostly British-
brewed, often locally. Beer is enjoyed by 32 million
UK adults.
The production and sale of
beer creates jobs in agriculture,
brewing, pubs and the wider
supply chain.
The industry has pledged to
remove 1 billion units from
the alcohol market by 2015.
This includes introducing and
promoting new alcohol ranges
such as beers below 2.8% abv
From the end of 2013 over
90% of bottled and canned
beers could be labelled with
unit content, lower-risk drinking
guidelines and drinking in
pregnancy advice.
Beer
Sports &
recreation
Tax &
accountancy
Air travel &
manufacture
Civil
engineering
Arts & creative
entertainment Legal Automotive
99.8% non UK 13% non UK
Proportion of wine sold in Britain
that is made in Britain
PUBS AT THE HEART OF THE COMMUNITY
87% UK 0.2% UK
Beer and pubs
contribute 19bn to
UK GDP and generate
11bn in tax revenue.
In total the beer and
pub sector supports
almost 1 million UK
jobs. 46% of those
employed in the sector
are 16 to 24 year olds.
Harmful drinking has nearly
halved in the last decade
to 4% of the population.
Alcohol consumption has
fallen by 13% since 2004.
RESPONSIBLE
DRINKING
Jobs in beer and other industries (thousands)
Pubs are places where people socialise, relax and
make connections. Its the original social network. The
pub is the focal point of any community, playing a
unique role in national life.
BRINGING PEOPLE TOGETHER
BEER SUPPORTS PUBS
Pubs inject an average of 80,000 into their local
economy and pay 66,500 in beer tax every year.
Nearly 90% of pubs are community or rural pubs,
bringing employment to much needed areas of the
UK - these small businesses are vital to the economy.
VIBRANT SMALL BUSINESSES
Pubs are supervised environments and take
responsible drinking seriously. The industry invests
millions in Drinkaware, Best Bar None, Pubwatch and
Challenge 21.
PROMOTING RESPONSIBLE DRINKING
Many pubs provide a range of important public
services including post ofces, local shops and
broadband internet access. They also hold a variety of
community events and activities such as live music that
add to local culture.
PROVIDING COMMUNITY SERVICES
The Beating Heart
Pence per pint of 5% beer
in
f
a
tio
n
+
2
%
b
e
e
r d
u
ty
in
c
re
a
se
s
c
o
st to
Tre
a
su
ry
Non
UK
0
100
200
300
400
0
10
20
30
40
50
SAMPLE BEER LABEL
0,33l 33cl
INGREDIENTS: water, barley malt, hops.
BEER BIRE BIRRA BIER
STARKL CERVEZA
AUTHENTIC BRITISH BEER
Brewed and bottled in the UK
2,8% ABV 008440 222008
DONT DRINK AND DRIVE
The beer and pub sector is working
with the Government to reduce
alcohol abuse.
0m
10m
20m
30m
0.9
Massive differences in duty
contribute to fraud, which
damages the UK economy.
Britons pay 40% of
the EU beer tax bill,
but only consume
13% of the beer sold
in Europe.
7 = beer 1 = wine 1 = cider 1 = spirits
corporation
tax
employment
taxes
additional
social security
payments
VAT