THE IMPACT OF BEER DUTY ON INVESTMENT

November 16, 2017 4:59 PM

  • The beer industry in the UK has invested billions more since the beer duty escalator was scrapped in 2013.
  • Investment in 2016 was £1.96 billion, which is £800 million more than in 2013.
  • 2013 was the year when the beer duty 'escalator' was scrapped and a planned 3p increase instead became a 1p cut.
  • Breweries alone are estimated to have invested £325 million.
  • The average brewer is making just one to two pence per pint in profit, compared to nearly £1 that goes to HM Treasury.
  • The pub sector is paying one pound in every three of total turnover in taxation
New research from the TaxPayers' Alliance shows how a massive injection of private investment into the beer industry followed the lowering of the tax burden in 2013. Thousands of jobs have also been created since George Osborne scrapped the escalator. 

Chief Executive of the TaxPayers' Alliance, John O'Connell, said:

"Cutting taxes on beer has led to huge investment in industry, helping the economy, consumers and creating jobs. The beer industry is massively over-taxed, and any further increases would scare off further investment as well as risking thousands of jobs. Further cuts to beer duty would see even more investment in an important industry."

The paper features testimonials from breweries and companies. For instance, Purple Moose Brewery said:

“For Purple Moose, the second cut in beer duty has, like the first one, inspired some confidence to invest in the future of the business, rather than just trying to get by."

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