The British pub industry is warning that an increase in VAT would have dramatic consequences for the sector.
A study by Oxford Economics, which is part of the British Beer and Pub Association, CAMRA and the Society of Independent Brewers’ Budget submission to the Chancellor, showed that increasing VAT to 20 per cent would add 6p to the price of a pint of beer and could result in 7,000 job losses.
The group is instead calling on the Chancellor of the Exchequer, George Osborne, to freeze duty on alcohol and, if VAT is raised to 20 per cent, to cut duty to help reduce the tax burden on pubs.
Brigid Simmonds, chief executive of the BBPA, said: “This report shows that a decision to raise VAT would have a disproportionate effect on beer and pubs at the expense of the off-trade.
“With dozens of community pubs closing each week in the UK, such a move would have a devastating effect on local communities and on the beer and pub industry with more than 7,000 jobs being lost every year.
“That’s why we are calling on the government to reduce duty in the event that VAT is increased to ensure that pubs are not unduly affected by the change.”
