The BBPA deemed last year’s increase to be especially impressive as the previous year, 2018, saw the biggest year-on-year sales growth for beer in 45 years there.
The 2018 figures alone witnessed a sales increase of 2.8% – all aided that year by good weather, a Royal Wedding and the FIFA World Cup.
But 2019’s growth equates to an extra 87 million pints of beer being sold in the UK versus 2018.
“The former Chancellor Philip Hammond’s decision to freeze Beer Duty in his last Budget back in October 2018 appears to have been a key factor in the growth of beer sales in 2019 with the duty freeze coming into place in February 2019,” stated the BBPA.
As a result of the price of beer being kept down in 2019, those extra 87 million pints boosted HMRC revenues by £57 million.
However, the Government’s planned increase in Beer Duty in tomorrow’s Budget will stifle this growth, believes the BBPA, unless Chancellor Rishi Sunak cuts it in his Budget.
“The new Chancellor, Rishi Sunak, has a fantastic opportunity to continue to help the beer and pub sector by going one step further than his predecessor and implementing a modest 2% cut in Beer Duty,” stated the Association, pointing out that analysis by Oxford Economics shows that a 2% cut in Beer Duty would mean 4,700 more jobs in the sector compared to an RPI increase.
“It would also show that he has listened to the 255,000 people who have signed the Long Live the Local petition asking him to cut Beer Duty,” added the Association, “That’s in addition to the 130,000 people so far who have also written to their MP informing them of the importance of their local to their community.”
With only a day to go until the UK Budget MPs have been ramping up the pressure on the Chancellor to cut Beer Duty.