Chancellor urged to use budget to cut tax on draught beer to support and safeguard pubs
CAMRA calls for new, lower rate of tax on pints served in pubs
CAMRA, the Campaign for Real Ale, is urging the Chancellor Rishi Sunak to use his Budget later this month to introduce a new, lower rate of duty for draught beer.
The consumer group, which represents 170,000 pub goers and beer drinkers, wants to see a lower rate of beer duty where it is served on draught in places like pubs, social clubs and taprooms.
The introduction of a differential rate of duty for draught beer would better support pubs and social clubs across Great Britain, helping them to recover from the pandemic, compete with supermarkets and thrive in the years to come.
The move could also help create jobs in the beer and pubs sector, and encourage the wellbeing benefits of enjoying a pint in your local.
Ahead of the Budget on 27 October CAMRA is mobilising pub goers up and down the country to get behind the campaign for fairer tax on beer in pubs by using their template email to contact their local MP. The ‘email your MP’ tool is available at: https://camra.e-activist.com/page/91459/action/1
Speaking about the campaign CAMRA National Chairman Nik Antona said:
“A new draught beer duty rate would be a huge improvement to the way beer is taxed, allowing for a reduced rate of tax on beer sold on draught in pubs, social clubs and taprooms.
“This would help pubs to compete with supermarkets, be a boost to local economies and job markets and encourage responsible drinking in the regulated environment of the local pub. This will also help to ensure that our pubs remain at the heart of our communities, helping to combat loneliness and social isolation.
“It is vital that the Chancellor uses this Budget to support the beer and pubs sector as it continues the long recovery from the Covid pandemic. A new draught beer duty rate is the best way to do just that, and would make sure that our pubs can survive and thrive in the years to come.”
Notes to editors:
CAMRA’s letter to the Chancellor Rishi Sunak is as follows:
The Rt Hon Rishi Sunak MP
Chancellor of the Exchequer
CC: Helen Whately MP, Exchequer Secretary to the Treasury
RE: Levelling up Beer Duty in the Autumn Budget
Dear Rishi Sunak,
We are writing from CAMRA, the Campaign for Real Ale, on behalf of our 170,000 members across the UK, to urge you to introduce a new Draught Beer Duty rate in the Budget later this month.
We were delighted to see the Prime Minister holding a pint of draught bitter on his Twitter account earlier this week, and we hope this is a good sign for the Budget and CAMRA’s long standing campaign to secure a new, lower rate of the duty for draught beer.
A new Draught Beer Duty rate will be a significant improvement on how we currently tax beer, allowing for a reduced rate that targets beer sold on draught in pubs and the wider on-trade.
Pubs and social clubs are a force for good – they create jobs, boost local economies, foster social and community wellbeing, and help combat loneliness and social isolation. Prior to the pandemic, the beer and pub sector added £22.9 billion to the UK economy annually. This included paying £12.7 billion in taxes, £11.1 billion in wages, and £2 billion in investment.
CAMRA has already commissioned research that found that a modest reduction in tax on draught beer could:
- Result in £26.6m of additional expenditure on draught beer.
- Pull consumption back to into pubs from the off-trade.
- Create additional jobs in pubs.
A more ambitious cut could produce even greater benefits, getting more people into pubs, and putting more money into local economies – truly delivering on the levelling up agenda.
Finally, as you are aware, there are many issues facing the beer and pub sector as it undergoes a fragile recovery from the pandemic. Therefore, it is vital that the outcome of Business Rates Review delivers a fairer deal for the pub sector, and that changes to the Small Brewers’ Relief Scheme do not result in some of the smallest brewers paying more tax.
Please use this Budget to seize this opportunity to level up how we tax beer, and, in the Prime Minister’s own words ‘Build Back Bitter’.
Nik Antona – CAMRA National Chairman
Tom Stainer – CAMRA Chief Executive
CAMRA’s full Budget submission can be found at https://camra.org.uk/campaign_resources/autumn-2021-budget-submission/