Brewers beg for reduction as beer tax hits nine-year excessive

Brewers have called for a cut to Britain’s ‘sky-high’ alcohol duty on draught beer as firms are set to face another increase on the levy from today.

While the Chancellor offered pubs a respite from increases to business rates last week, high taxes on alcohol still threaten to stifle Britain’s beer industry, according to figures in the sector.

The pain is set to worsen from today, with beer duty set to rise by 3.7 per cent, the first increase since 2017, piling further pressure on struggling pubs and breweries that could force many to close their doors. It also means brewers face an additional £130 million a year in costs.

Andy Slee, head of the Small Independent Brewers Association (SIBA), which represents 700 drinks makers, said the Government should instead cut duty on pints pulled in pubs to ‘take the handbrake off business to help create more jobs and invest in their venues’.

Writing for The Mail on Sunday’s sister title ThisIsMoney, he called on the Government to increase draught relief, a mechanism set up by Rishi Sunak’s government to reduce the rates of alcohol duty charged on drinks poured in pubs compared with those sold in supermarkets.

SIBA figures revealed that three breweries a week have closed for good in the UK over the past 12 months. Slee also called on the Government to deliver an overhaul of the business rates system promised by the Treasury last week.

Rachel Reeves has faced a huge backlash over her rates plans, which will see many retailers, restaurants and hotels pay higher tax bills from April. But publicans have warned the climbdown will not be enough to save an industry battered by increases in National Insurance, the minimum wage and now beer duty.

Emma McClarkin, chief executive of the British Beer and Pub Association, said: ‘These changes unfortunately increase the likelihood of further price rises, which no brewer or publican would want to inflict on their customers.’