January’s freezing weather has been blamed for an 8.8 per cent fall in beer sales for the first quarter of the year.
According to the latest UK Quarterly Beer Barometer, beer sales fell by 5.1 per cent on Q1 2009, a decline the British Beer and Pub Association (BBPA) attribute to the icy weather experienced across the UK in January that prevented many consumers from going to the pub.
However, the rate of decline in beer sales is improving, with the change easing by 0.7 per cent in the year to March 2010, although the 5 per cent increase in beer duty, which came into force in March’s budget, may have an effect on future figures.
Alcohol tax reform
Brigid Simmonds, chief executive of the BBPA, said she hoped the new government would approach the beer tax reform, announced in its five-year programme yesterday, with ‘fresh eyes’ to support the pub industry.
“These new figures show the economic environment remains tough and precarious for Britain’s pubs,” she said. “The exceptional impact of winter’s icy blast has taken its toll, but this does not fully explain the extent of the current difficulties facing the industry.
“The Budget in March raised our beer tax bill by a further £161m. It means over the last two years beer taxes have increased 26 per cent raising costs by £761m during a time of deep recession.
“As a first step we are looking for the government to abolish the beer tax escalator. Secondly, if the government does put up VAT we are looking for a compensatory reduction in beer tax. This would be a targeted measure to help pubs, because over half of beer sales are in pubs and 60 per cent of drink sales in community pubs are beer.”
Chancellor George Osborne is due to announce the government's emergency budget on 22 June.