Scottish Beer & Pub Association Calls on Prime Minister to Support Scottish Pubs with Duty & VAT Cut
As the Prime Minister addresses the Scottish Conservative Party conference in Aberdeen, the Scottish Beer & Pub Association (SBPA) is making a plea for assistance to save the struggling Scottish pub sector. With a closure rate twice that of their counterparts in England, Scottish pubs are grappling with challenges such as limited business rate support. The SBPA urges the UK Government to take immediate action in the upcoming budget by reducing beer duty and introducing a lower VAT rate for the hospitality industry.
Emma McClarkin, CEO of the SBPA, emphasizes the urgency of addressing the dire situation, stating, “Scotland’s pubs are the lifeblood of communities up and down the country, but they are closing at an alarming rate. Urgent action is needed at next week’s budget to help them survive the current cost-of-living crisis and myriad of increased costs they face.”
McClarkin underscores the substantial impact of high beer taxes on the industry, noting that beer is taxed at 12 times the rate in Germany. This, coupled with other costs, leaves the average pub earning only 12p on a pint of lager, while £1.52 is paid in taxes to the UK Government. The proposal calls for a reduction in beer duty and the introduction of a lower VAT rate for pubs, envisioning a significant boost for the industry and pub-goers alike.
Highlighting the absence of business rate support for Scottish pubs, McClarkin stresses the critical need for support in the upcoming budget to curb the closures that have surged over the past year.
Key Points:
- Net Pub Closure Rates 2023:
- England: -0.9%
- Scotland: -2.0%
- Wales: -2.1% (BBPA Analysis)
- Cost of a 4.5% ABV Pint:
- Average cost: £4.80
- Tax: £1.52 (80p VAT; 49p duty; 11p NDR; 12p employment/other)
- Other Costs: £3.16 (£1.24 cost of sales; 91p wages; 24p utilities; 77p other costs)
- Pub Income: 12p
