An Early Day Motion (EDM) was tabled by Andrew Griffiths MP, the chairman of the All Party Parliamentary Beer Group, last week and is calling for the Government to 'sustain the momentum' created by last year's duty cut and removal of the duty escalator by freezing beer duty in next year's Budget.
So far the EDM has attracted 13 signatures and BBPA chief executive Brigid Simmonds is hoping for wider support before next March to help buoy the sector and reverse the effects of the duty escalator introduced in 2008.
“The 2013 duty cut was a hugely popular first step, which has given the industry confidence, and had a real impact on brewing and pub investment, protecting and creating jobs all over the country," she said.
“But it will take many years to undo the impact of the 42 per cent hike in beer duty we endured from 2008-2012.
The duty freeze EDM comes as research by Regioplan Policy Research and EY on behalf of the Brewers of Europe shows that the UK contributes 43 per cent of total amount of duty paid on beer sales in 31 countries in Europe, while only accounting for 13 per cent of the total consumption of beer.
It also shows that after Germany, the British brewing industry generates the most jobs in the EU. In 2012, beer in Britain generated more than 32,700 jobs in the supply sectors, more than 260,000 jobs in hospitality sector and around 11,500 jobs in the retail sector. In total, the employment impact of the production and sale of beer was some 321,900 jobs – one in six of all jobs created in Europe from beer and brewing.
Simmonds said: “This valuable new report highlights the huge importance of brewing to the European economy. The brewing industry provides two million vital jobs and Britain has a fundamental role in creating these opportunities.
“The report very clearly highlights the disproportionate tax burden paid by Britain’s beer drinkers and pubgoers. It underlines why the Chancellor was right to act in last year’s Budget and why a further freeze in beer duty is now needed.”