High tax on beer severely impacting hospitality industry

The high level of tax on beer has been criticised by industry groups for bringing about a decline in the rate of alcohol consumption in the UK, thereby impacting pub, bar and restaurant turnover. According to the British Beer & Pub Association (BBPA), the leading body representing Britain’s brewers and pub companies, beer duty, which is 54 per cent higher than in 2000, is harming the industry, with annual sales of beer falling by 1.5 per cent in 2015, equivalent to 114 million pints.

Along with beer duty, earlier this year it was reported that Britain’s pubs carry one of the heaviest tax burdens in the UK economy, with the main burdens being VAT, excise duty and business rates. The report from Oxford Economics for the BBPA showed that the industry’s total tax bill for 2015 amounted to £7.3 billion, or £140,000 for every pub, representing 34 pence in every pound of turnover. In terms of the total tax bill, “costs were £800m larger than the ‘gambling and betting’ sector,” the report said.

The BBPA this week launches its annual handbook to show trends within the industry

At Beavis Morgan, we have extensive experience of working with clients in the hospitality sector and our professionals are acknowledged experts in issues affecting pubs, bars and restaurants.

Contact Matthew Burge or your usual Beavis Morgan Partner for further information about how we can assist you and your hospitality business.