Bad news for UK beer prices
Industry bodies have warned that the new beer duty will increase on drinks sold in both pubs and supermarkets as new rates come into effect this week.
These changes will mean brewers face an additional £130 million in costs per year, and will have no choice but to pass the cost onto customers, the British Beer and Pub Association says.
Figures from the leading trade association found that 100 brewers closed in 2024, as many struggled with existing market pressures, as well as newly introduced packaging fees themselves adding a further £124m a year.
The trade association warns that the duty increase equates to an increase in the price of a pint by 2p, putting further pressure on already wafer-thin margins in the sector and impacting on investment and growth.
“These changes, unfortunately, increase the likelihood of further price rises, which no brewer or publican would want to inflict on their customers,” said Emma McClarkin, CEO of the British Beer and Pub Association.
“For brewers, who already pay some of the highest rates of beer duty in Europe, this increase will add further strain to their already razor-thin profit margins and risk one of the UK’s world-renowned industries producing the greatest beers in the world.
“The sector supports over one million jobs throughout the UK from grain to glass, and we know the government values the people behind the pint, which is why we want to work with them to keep a pint affordable and help protect jobs.”
McClarkin noted that the UK currently pays the second-highest rates of beer duty in Europe, with brewers paying 12 times more than their German or Spanish counterparts.
The BBPA is urging Government to cut beer duty over the remainder of this parliament, bringing the tax in line with our European neighbours, protecting our brewing heritage, supporting investment in UK manufacturing, and keeping the price of a pint affordable for all.
