Yorkshire and Humber’s beer and pub sector gave the region’s economy a £2.5bn economic boost while also contributing over £1.7bn in tax, according to new research commissioned by a trade body.
The British Beer and Pub Association said despite the figures, pubs only make an average of 12p a pint once their taxes and costs are deducted.
The organisation said the findings underline the need for Government support for the industry and urged Labour not to go through with a potential ban on smoking in pub gardens.
The BBPA said that as a whole, Britain’s beer and pub sector poured more than £34.3 billion in Gross Value Added (GVA) into the economy and contributed more than £17.4 billion in tax in just one year, according to new research by the trade body.
The figures follow the BBPA commissioning Oxford Economics to assess the sector's economic impact. The full findings will be published in the coming weeks.
But the BBPA said direct activities in pubs and breweries generated £15.5 billion in Gross Value Added to the economy, a further £8.3 billion came from supply chain activities such as production and supply of raw materials, and another £10.6 billion came from induced impacts of those directly employed and employed in the supply chain spending a proportion of their wages.
The BBPA is arguing for a cut in beer duty, business rates reform, and a pledge to keep the 75 per cent business rates relief to ensure that pubs can survive.
Emma McClarkin, CEO of the BBPA, said: “The Yorkshire & Humber sector’s growth will underpin economic growth, which is why if the Government truly is business-friendly, it must recognise that pubs and brewers are shouldering multiple taxes and costs that are squashing growth and could lead to businesses failing.
“There is no more meat on the bone to cut, which is why it we are calling on the Government reduces the cost of doing business so we can continue to make a massive contribution to the public purse.
“It is imperative there is a reform in the business rates system which currently penalises bricks and mortar businesses like pubs which pay five times more than their share of turnover.
“Until then, the vital 75 per cent business rates relief due must be maintained for pubs so that one of the core cost components of doing business can be controlled.
"In addition, we urgently need to see a cut in beer duty.
“Our industry is an economic bellwether and when pubs and brewers suffer, the economy suffers. If the Government wants to succeed in its growth mission, it needs to support our beer and pubs which play such a vital role in our communities.”
The BBPA said that a proposed smoking ban in beer gardens “would have a devastating impact on many pubs and affect their viability as businesses”.
A spokesperson said: “The BBPA is urging Government to reconsider this misguided restriction.”
Prime Minister Sir Keir Starmer has said the Government will “take decisions” on smoking.
The British Beer and Pub Association said despite the figures, pubs only make an average of 12p a pint once their taxes and costs are deducted.
The organisation said the findings underline the need for Government support for the industry and urged Labour not to go through with a potential ban on smoking in pub gardens.
The BBPA said that as a whole, Britain’s beer and pub sector poured more than £34.3 billion in Gross Value Added (GVA) into the economy and contributed more than £17.4 billion in tax in just one year, according to new research by the trade body.
The figures follow the BBPA commissioning Oxford Economics to assess the sector's economic impact. The full findings will be published in the coming weeks.
But the BBPA said direct activities in pubs and breweries generated £15.5 billion in Gross Value Added to the economy, a further £8.3 billion came from supply chain activities such as production and supply of raw materials, and another £10.6 billion came from induced impacts of those directly employed and employed in the supply chain spending a proportion of their wages.
The BBPA is arguing for a cut in beer duty, business rates reform, and a pledge to keep the 75 per cent business rates relief to ensure that pubs can survive.
Emma McClarkin, CEO of the BBPA, said: “The Yorkshire & Humber sector’s growth will underpin economic growth, which is why if the Government truly is business-friendly, it must recognise that pubs and brewers are shouldering multiple taxes and costs that are squashing growth and could lead to businesses failing.
“There is no more meat on the bone to cut, which is why it we are calling on the Government reduces the cost of doing business so we can continue to make a massive contribution to the public purse.
“It is imperative there is a reform in the business rates system which currently penalises bricks and mortar businesses like pubs which pay five times more than their share of turnover.
“Until then, the vital 75 per cent business rates relief due must be maintained for pubs so that one of the core cost components of doing business can be controlled.
"In addition, we urgently need to see a cut in beer duty.
“Our industry is an economic bellwether and when pubs and brewers suffer, the economy suffers. If the Government wants to succeed in its growth mission, it needs to support our beer and pubs which play such a vital role in our communities.”
The BBPA said that a proposed smoking ban in beer gardens “would have a devastating impact on many pubs and affect their viability as businesses”.
A spokesperson said: “The BBPA is urging Government to reconsider this misguided restriction.”
Prime Minister Sir Keir Starmer has said the Government will “take decisions” on smoking.
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NewsTranscript
00:00The British Beer and Pub Association have released new research today with Oxford Economics
00:06about the contribution that the beer and pub sector makes to the UK economy. Some 34 billion
00:11we pour into the UK economy and 17 billion of that in tax. And we, despite that huge
00:18contribution that we make, are really struggling to make a profit and we still today can only
00:23make 12p from every pint that we sell. So we are calling on the government to use the
00:28budget as an opportunity to support the Great British Pub and our Great British Brewers
00:33and how can they do that? By looking at business rates reform, maintaining the relief while
00:38they're working on that new fair system, but also looking at keeping the cost of a pint
00:43affordable and looking at reducing the cost of beer duty. This is what we need to do to
00:48support our beer and brewers at the heart of the community and keeping the pub alive.