In an industry that seems to be suffering from a lot of bad news, the cutting of the taxation on beer is sure to provide a boost to the late night leisure industry.
With the cost of living going up and average earnings going down, it’s no surprise that studies have shown that 69% of the UK adult population supported a cut or freeze in beer tax. 80% want wider taxes on pubs to be frozen or cut and 62% want to see a cut in business rates for Britain’s pubs.
Not just popular with customers and bar owners, this tax measure has proved popular with MPs as the number of supporting has reached 100.
MPs from all parties have been offering support for the move, which has been brought on by a tireless campaign by Britain’s pubs and breweries, the British Beer and Pub Association, CAMRA and SIBA.
This victory for the industry comes following the Chancellor’s cut in beer duty last year. Despite this cut the beer tax has gone up 42% over the previous five years, making it even more important for action to be taken before any more damage is caused to the nightlife and bar industry.
Facts about beer taxation
The beer and pub sector supports over 900,000 jobs, 46% of which are held by 16-24 year olds. One job in brewing generates one job in agriculture, one in the supply chain, one in retailing and eighteen jobs in pubs.
Beer and pubs contribute £22 billion to UK GDP and generate £12 billion in total tax revenue.
The increase in beer tax from 2008 to 2013 coincided with a 21 per cent drop in sales, the closure of 7,000 pubs and nightlcubs, with a massive 58,000 UK jobs lost.
The taxation of beer in the UK means it’s one of the most taxed countries in Europe. Despite this, if a decision was made to freeze beer duty for the next two years it would cost the Treasury just £4 million – a drop in the ocean compared to the value added by the industry in total.
In these tumultuous times, you can’t afford to take any risks with insurance. To get in touch with NDML about insuring your nightclub, bar or late night venue with a personalised, robust policy, call one of our experience staff on 0844 488 9205 or use our contact form.