Bad news for beer prices in the UK
A bumper May with two bank holidays and VE Day will see an estimated 14 million extra pints sold in pubs compared to a month without, data from the British Beer and Pub Association shows.
VE Day (8 May) itself is estimated to have brought in up to one million extra pints sold in pubs, thanks in part to the licensing hours extension which allowed them to stay open until 01h00.
The additional pints mean the sector could deliver an extra £69 million in sales for the economy and generate £11.5 million in VAT and £6.5 million in beer duty compared to a month with no bank holidays or VE Day.
While this boost has been welcomed, the trade body cautioned that the sector is wrestling with a barrage of extra tax and fees following the April cliff-edge, which is costing the industry an extra £853 million.
The new statistics come after the BBPA revealed the average price of a pint has broken the £5 barrier for the first time, partly due to rising costs placed upon the sector.
“Many of us chose to spend our local pub, a home away from home, as the perfect location to spend the sunny long weekends and to celebrate VE Day,” said Emma McClarkin, Chief Executive of the British Beer and Pub Association.
“These figures demonstrate how vital such occasions are to our sector, which is battling new costs including higher business rates bills, unfair and chaotic packaging fees, and soaring new employment costs,” she said.
“Following the avalanche of new fees in April which saw new costs hit the industry, the BBPA is calling on the Government to ease the burdens placed upon the sector.
“We urge the Government to support our sector by reforming business rates, reviewing punishing EPR costs, and mitigating new employment fees so that it can continue to drive the UK economy’s growth and supporting local jobs.”
The BBPA said the government can relieve this pressure by permanently rebalancing the business rate system, reviewing chaotic EPR costs, mitigating new employment fees, and ensuring the Employment Rights Bill doesn’t remove flexibility for the sector.
