Decline in beer sales brings warning on Budget tax hike

Almost 140 million fewer pints of beer were sold in pubs last year as sales continued to fall amid more closures and job losses in the trade, new figures revealed.

The fall in sales slowed but the Government was warned that another increase in beer tax in the March Budget will continue the decline.

The British Beer and Pub Association (BBPA) reported a 3.4 per cent slump in beer sales in 2011, the slowest rate since 2004, but representing 139 million fewer pints.

About 9,000 jobs were lost in the sector, mainly in pubs, with an average of 14 pubs closing every week in the first half of the year.

Sales in supermarkets and shops also fell, down by 3.7 per cent, said the BBPA.

Chief executive Brigid Simmonds said: “The decline in beer sales has slowed but these figures show the sector cannot afford another round of inflation-busting, beer tax hikes in the Budget.

“This will delay any potential recovery in an iconic and economically vital British industry.

“A change of course, giving brewers and pubs a chance to invest and expand their operations, could create over 5,000 jobs in 2012, which should be a great year for British beer and pubs with the Queen’s Jubilee, Euro 2012, the Olympics and Paralympics.

“These events could provide a real boost for the UK economy and boost employment, but this will only be possible if the Government reverses planned tax increases and damaging over-regulation.”

Beer sales support about one million jobs and generate almost £8bn in tax revenues, according to the BBPA, who added that beer duty has increased by over a third in the past four years.