Budget 2024: Warning pubs and breweries could face extra £310m bill

Pubs and breweries could face an extra £310m bill after the Budget, an industry lobby group has warned.

The British Beer and Pub Association (BBPA) has warned Chancellor Rachel Reeves that a hike in business rates and beer duty could leave Britain’s drinking spots struggling.

Additional costs could stifle growth and threaten jobs, with some one million workers reliant on the industry for employment, the BBPA stressed.

Chief executive Emma McClarkin cautioned: “The clock is ticking on this government to uphold their pre-election promise to support our industry.

“The government must be clear-eyed about the staggering extra costs which will choke growth, be bad for business, and risk people’s livelihoods.”

And she added: “Our industry pours billions into the economy, forms the backbone of the UK job market and is a cornerstone of the community.

“Yet with pubs making an average of just 12p a pint thanks to the huge cost of doing business, it is in a fragile state.”

The BBPA is urging Reeves to support the pub sector, maintain business rates relief and reform the levy overall, and cut beer duty – rather than raise it in line with inflation. 

According to the BBPA, the beer and pub industry contributes to growth by investing some £2bn a year, which could be at risk if the sector is squeezed by tax hikes.

While a five per cent cut to beer duty at the 30 October fiscal event Budget would result in up to 12,000 additional jobs, mainly in pubs, the BPPA said.

“If the government doesn’t act then communities, jobs, and the economy will pay the price,” McClarkin warned.

“If the government invests in the industry, then we can continue to boost the economy, employ more people, and remain a home from home.”

A Treasury spokesperson said: “We’re supporting businesses like our well-loved pubs through pledges to make the business rates system fairer, cap corporation tax at 25 per cent and to publish a corporate tax roadmap so that they have some welcome certainty to plan for the future.”