Wales’ beer and pub sector poured more than £1.5 billion in Gross Value Added (GVA) into the economy and contributed more than £1.2 billion in tax in just one year, according to new research by the trade body - but despite huge contribution to country’s finances and communities, taxes and rising business costs mean pubs make just 12p a pint .
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.
Latest figures from 2024 Oxford Economics research show GVA contributions were up from the previous contribution of £1.3 billion.
These figures demonstrate the sector’s important economic contribution to both their region and the wider national economy, the British Beer and Pub Association (BBPA) said.
But despite this, pubs make an average of just 12p on every pint of beer once taxes and costs have been deducted.
Not only that, but the industry is also facing multiple burdens and restrictions in the form of proposed eyewatering packaging costs and a potential beer garden smoking ban.
Now the BBPA is calling for a reduction in soaring costs of doing business. It warns the industry needs government support from the Budget to make sure the sector can continue to contribute to the economy and boost the country’s finances.
The BBPA wants to see a cut in beer duty, business rates reform, and a pledge to keep the 75% business rates relief to ensure that pubs can survive.
Emma McClarkin, CEO of the BBPA, said: “The Wales 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% 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.”
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.
Latest figures from 2024 Oxford Economics research show GVA contributions were up from the previous contribution of £1.3 billion.
These figures demonstrate the sector’s important economic contribution to both their region and the wider national economy, the British Beer and Pub Association (BBPA) said.
But despite this, pubs make an average of just 12p on every pint of beer once taxes and costs have been deducted.
Not only that, but the industry is also facing multiple burdens and restrictions in the form of proposed eyewatering packaging costs and a potential beer garden smoking ban.
Now the BBPA is calling for a reduction in soaring costs of doing business. It warns the industry needs government support from the Budget to make sure the sector can continue to contribute to the economy and boost the country’s finances.
The BBPA wants to see a cut in beer duty, business rates reform, and a pledge to keep the 75% business rates relief to ensure that pubs can survive.
Emma McClarkin, CEO of the BBPA, said: “The Wales 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% 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.”
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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.