Beer duty rise ‘will hit region’s pubs hard’

THE pub industry in Sefton, worth tens of millions of pounds, could take a hit if beer duty is raised as expected next week, Britain’s Beer Alliance has warned.

Tax on beer is expected to rise by 3.4% in the Chancellor’s Autumn Budget, which will be delivered on Tuesday.

With consumers increasingly opting for cheaper supermarket drinks and pub margins stretched, local establishments are bracing them- selves for further struggles.

Sefton’s 164 pubs and bars employ 2,665 people directly, paying them £21m in wages, new analysis from Oxford Economics shows.

They also support a further 701 jobs and £13m in wages indirectly, either through related jobs, like those in the supply chain, or through the money spent by people working in the pub industry.

In total, through salaries and spending power, the area’s pubs contribute £66m to the local and national economy, analysis shows.

There are 5,636 pubs in the North West as a whole, adding £2bn to the economy.

But throughout the the UK, 3.2 pubs have closed on average every day over the past two years. the

If that trend continues, Britain’s Beer Alliance, an umbrella organisation for major brewers and pub companies, says that one in 10 pubs nationwide could close within five years.

It would mean a significant loss to the estimated £18bn pub industry, which supports about 800,000 jobs in the country.

A survey conducted by the organisation shows that more than a third of people would reconsider a trip to the pub if beer prices increased.

It also showed that a decrease in the number of pubs could cause more than just financial loss, with 77% saying that they go to the pub as a place to relax and unwind, and two in five saying that it acts a social hub.

David Cunningham, programme director of Britain’s Beer Alliance, said: “Pubs are the heart and soul of our culture and communities, they support many jobs, contribute significantly to the economy and are dear to people’s hearts right across the country.

“Pubs already face a range of tax pressures and if the Chancellor raises beer duty in line with Retail Price Index inflation as planned on October 29, pubs will feel the pinch even more.

“Seven in every 10 alcoholic drinks sold in a pub is beer, so it’s easy to see how a small tax increase adds up over a year.

“Based on current closure rates, we estimate that within five years more than one in 10 pubs in the UK will have closed for good, costing thousands of jobs.

“This will have a devastating effect on communities up and down the UK.”

There are six breweries in Sefton, supporting 104 jobs and adding £2.2m to the economy, according to the Oxford Economics analysis.

That means that altogether, the local pub, brewery and beer trade in Sefton adds £76m to the economy each year, it says.