Yahoo News Slash beer duty to support struggling pubs, Tory MPs tell Sunak
Rishi Sunak is under growing pressure to slash beer duty at the Budget as a group of Conservative MPs called for the levy to be cut dramatically to support the ailing pub sector.
In a letter to the Chancellor co-signed by 68 Conservative MPs, Richard Holden, a Tory MP and member of the All-Party Parliamentary Beer Group, warned that the tax was “extraordinarily high” and risked stunting the recovery of the beer and pub industry as it emerges from the pandemic.
He said: “Whilst the government support has been welcome, it has not made up for the massive impact of being closed for so long on these vital local institutions.
“The best way for them to build back better after this crisis is to get people back into pubs and the best encouragement for publicans and the public is to see real action on beer duty.”
The UK pays £3.6bn in beer duty each year, three times more than the average rate in Europe. For instance, on a pint of beer with an alcohol strength of 5pc, the UK pays 54p while Italy pays just 11p.
Pubs have been told they could reopen beer gardens as early as April 12 as part of the Prime Minister’s roadmap out of lockdown, with indoor drinking to be allowed from May 17.
But the British Beer and Pub Association warned that the cautious reopening of pubs would cost the sector £1.5bn in lost trade in April alone, as three in five pubs will not be able to open or be viable with outside service only.
It added that even when pubs can reopen indoors from mid-May at the earliest, they will still be significantly down on business due to continued restrictions such as social distancing and table service.
Emma McClarkin, chief executive of the BBPA, said: “Pubs are the heart of our communities and a vital part of the UK economy, with a presence in just about every city, town and village across the country. Amid this crisis though they face an existential threat, and thousands could be lost for good.
“It is up to the Chancellor to deliver the support our pubs and brewers need. That includes a beer duty cut that allows them to survive and thrive in the future. I hope he listens to our sector and those on his backbenches pleading him to do the right thing.”
