Punters told 2,000 pubs could close unless they are offered ‘a lifeline’

The British Beer and Pub Association (BBPA) said pub landlords and breweries are struggling with the soaring cost of energy, alcohol and food, while customers are spending less because the cost of living has hit a 40-year high.

The trade association, which represents more than 20,000 pubs, said Chancellor Jeremy Hunt must “extend a lifeline” with a series of tax cuts in his Spring Budget on March 15.

He is being asked to announce another alcohol duties freeze from August, and significantly increase the planned 5 per cent discount on draught beer sold in pubs.

It comes as landlords and breweries are also dealing with soaring energy costs and the discount they receive from the Energy Bill Relief Scheme is due to be cut in April.

The BBPA said the Government needs to hold energy suppliers to account and stop them from overcharging pubs and breweries.

Some pubs in Yorkshire have resorted to shutting their pubs, temporarily or permanently, closing their kitchens, reducing opening hours to cut costs.

Emma McClarkin, Chief Executive of the BBPA, said: “It is crucial the Government shows in this budget that it understands the pressures the sector is facing and just how much our pubs and breweries mean to communities everywhere across the UK.

“After almost three years of extremely tough trading conditions due to lockdowns, an energy crisis, supply chain disruptions and more, now is a make-or-break moment to save our locals and breweries from failure.”

The BBPA has also highlighted data from Oxford Economics, which states on-trade beer sales will fall by an estimated 9 per cent in 2023/24, meaning 288m fewer pints will be sold and 25,000 jobs will be put at risk.

The current freeze on alcohol duties is due to end in August, when the Government is planning to introduce a simpler tax system.

Under the current plans, duty will be cut on all drinks with alcohol content below 8.5 per cent, and a blanket tax of 12.5 per cent will be introduced for wines with alcohol content between 11.5–14.5 per cent.

The BBPA is calling on the Chancellor to confirm the new rates as soon as possible, and consider a much lower rate for draught beer sold in pubs.

It said beer duty has increased by 60 per cent over the last 20 years and now the UK has one of the highest rates in Europe.

A Government spokesman said: “The Government will always be on the side of businesses, including pubs.

"That’s why our support includes a six-month extension to the alcohol duty freeze, a generous Business Rates package worth £13.6bn, and we’ve pledged further energy support from April onwards.”