Pub body in plea for beer duty cut amid potential outdoor smoking ban

The British Beer and Pubs Association, a body representing UK pubs, has urged for a series of tax reductions in the upcoming October Budget.

This follows recent speculation that the Government might prohibit smoking in beer gardens. The association is advocating for a decrease in beer duty, stating that after accounting for taxes and costs, pubs currently earn an average profit of 12p on every pint of beer.

This plea comes in conjunction with new research by Oxford Economics, which indicates that in 2022, the most recent year for which data is available, pubs contributed £34.4bn to the economy and £17.4bn in tax. But Emma McClarkin, chief executive of the BBPA, said the sector is "shouldering multiple taxes and costs that are squashing growth and could lead to businesses failing".

She stated: "There is no more meat on the bone to cut, which is why we are calling on the Government reduce the cost of doing business so we can continue to make a massive contribution to the public purse."

Pubs and restaurants suffered significant losses during 2020 and 2021, having to shut down for extended periods due to Covid-19 lockdowns. Then, throughout 2022 and 2023, soaring inflation led to increased operating costs, while the cost-of-living crisis dampened sales.

According to official Government data for England and Wales, the rate of pub closures escalated to 80 per month over the first three months of 2024, a rise of 51% compared to the same period the previous year. Sir Keir Starmer hinted the Government could "take decisions" on a potential ban of outdoor smoking to cut preventable deaths and relieve the NHS.

Pubs and bars could suffer yet another blow as industry heads slam the proposed outdoor smoking prohibition, which may extend to beer gardens and exterior zones of stadiums, labeling it just another "nail in the coffin". Leaked details seen by The Sun indicate that the indoor smoking restriction might stretch into other areas, including parks, dining spots, and hospital premises.

One of the BBPA’s suggestions to counter the impact on pubs is to reform business rates, something which Labour included in its pre-election manifesto.

The tax – which applies to non-residential property such as pubs, factories, shops and offices – has been criticised for unfairly punishing companies that trade in-person versus online. Pubs currently enjoy 75% relief from business rates, but Ms McClarkin said it is “imperative” the system is reformed altogether.