Beer and pub industry in Britain contributes £23.1b to the economy

11 January 2017 by
Beer and pub industry in Britain contributes £23.1b to the economy

The beer and pub industry in Britain contributes £23.1 billion to the British economy each year.

That's according to a new report by Oxford Economics, commissioned by the British Beer & Pub Association (BBPA).

The report further revealed that the industry employs almost 900,000 people, with the number of jobs increasing by 29,000 from the previous year, highlighting the remarkable economic benefits that the beer and pub industry offers the national economy.

Investment in the industry has increased 40%, up from £1.2 billion in 2015 to £2 billion in 2016, and over 49,000 pubs across Britain support nearly 900,000 jobs. Brewing alone sustains over 100,000 jobs.

Among the positive statistics, the BBPA says that other figures make a clear case for a further reduction in the UK's high rate of beer duty.

It said that the beer and pub industry shells out £12.6b in tax each year, with Britons paying 40% of all EU beer duties, yet drinking just 12% of the beer.

Tax has been rising for years, but the BBPA said the statistics of the report highlighted the "unjustly high" rate of beer taxes more than ever.

The Budget is set to take place on 8 March, and a further beer tax cut could protect jobs and improve confidence in the sector.

Brigid Simmonds, BBPA chief executive, said: "The BBPA is calling for a further cut in beer duty in the Budget because our sector supports almost 900,000 vital jobs. It is particularly important that we can go on boosting employment, especially for younger people.

"Three beer duty cuts since 2013 have brought huge benefits, created jobs and encouraged investment, but our rate of duty is still many times higher than that of our neighbouring countries. As we leave the European Union, we need a tax system that encourages investment more than ever before, and we will be working hard to encourage the government to secure further reductions on 8 March."

Adrian Cooper, chief executive officer of Oxford Economics, added: "Our analysis confirms that the UK beer and pub sector continues to be an important source of employment and output at a national and local level. Its activity generates a significant amount of tax contributions, investment and opportunities for young people to enter the labour market."

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