Britain’s Beer Alliance, made up of individual publicans and brewers, states that thousands more could close if Chancellor Philip Hammond continues with his plan to hike beer duty by over 3% in this month’s Budget, with future annual inflation linked prices planned.
A BBA report estimates an additional 6000 pubs could close over the next 5 years along with the loss of a further 12,500 jobs.
The Alliance says there are currently c48,000, but about 3 a day continue to close. A further rise in duty will make many more economically unviable. Currently 1 in every 3 pounds spent in pubs goes to the government.
Although in decline, the pub and brewing sector is huge business in the UK. It employs 900,000 people, is worth c£23bn to the economy and pays c£13bn in taxes.
Beer duty was ‘frozen’ in last the Budget last autumn, but the industry fears it will be targeted this time round.
If you have a pub and are struggling with debts contact us for advice. It’s one of the sectors we specialise in! Call us on 0800 9700539.