Proactive Investors - The British Beer and Pub Association (BBPA) is urging the government to cut beer duty and bin plans for greater smoking restrictions to ensure the survival of the industry in the face of mounting pressures.
According to the BBPA, pubs make an average of just 12p on every pint of beer once taxes and costs have been deducted.
Yet the sector added more than £34.4 billion in gross value added (GVA) to the economy and contributed more than £17.4 billion in tax over the past year, according to Oxford Economics research.
This marks a rise from the previous year's GVA of £26.2 billion.
Alongside prohibitive business rates, the BBPA cited the possibility of a ban of smoking in beer gardens as another problem for the industry to grapple with.
The BBPA also warned that impending Extended Producer Responsibility (EPR) recycling costs, among the highest in Europe, could force some brewers to cease operations.
BBPA chief executive Emma McClarkin stated: “Our sector’s growth will underpin economic growth, which is why if the government truly is business-friendly, it must recognise that pubs and brewers are shouldering multiple taxes and costs that are squashing growth and could lead to businesses failing.”
“There is no more meat on the bone to cut, which is why we are calling on the government to reduce the cost of doing business so we can continue to make a massive contribution to the public purse.”
On the prospect of a possible ban on smoking in pub gardens and other outdoor areas, the BBPA warned it will have “a devastating impact on many pubs and affect their viability as businesses”.
The BBPA urged the government to reconsider “this misguided restriction”.