BBPA says inflation rates rise is worry for pubs & brewers

The British Beer and Pub Association (BBPA) has commented on UK inflation rates rising to the highest level in six months, with RPI and CPI rising to 3.5% and 2.7% in August respectively.

BBPA Chief Executive Brigid Simmonds said, “This significant rise in inflation is worrying news for pubs and brewers alike. Beer duty is linked to RPI, which rose by 3.5% in August, meaning pubs and brewers face a steep hike in taxes just like under the dreaded beer duty escalator. As a consequence, Britain’s Brewers could see an increase of over £100 million in tax in the next Budget. The misery for pubs would be compounded by CPI increases in business rates.

“£1 in every £3 spent in pubs already goes to the taxman and under the beer duty escalator, which saw sustained increases to beer tax, 5,000 pubs closed and 58,000 jobs were lost. It’s clear that action is needed by the Government to alleviate these cost pressures pubs face, else we risk losing them forever. This is why we are backing the campaign longlivethelocal.pub to call on the Government to cut beer tax and support local pubs.”