Chief executive of the British Beer and Pub Association (BBPA), Brigid Simmonds OBE, said that certain issues over the Scottish drinks’ policy need to be addressed if the pub trade is to continue to play a vital part in Scotland’s economy.
Speaking in the keynote session of the 33rd European Brewery Congress & Exhibition Centre in Glasgow yesterday, Simmonds highlighted that more Sots depend on the beer and pub trade than on the Scotch Whisky trade.
Scottish beer and pub trade
The beer and pub sector currently contributed £1.5bn to the Scottish economy every year, employing 71,000 people, she said.
“It’s an absolutely vital part of Scotland’s economy – and we want to keep it that way,” she said.
She told delegates that although the sector held a lot of potential for job creation – particularly as Scotland prepares to host major events such as the Ryder Cup and the Commonwealth Games – the policy framework needs to be right in order to take advantage of the opportunity.
“That is why we are concerned about the direction that some aspects of alcohol policy in Scotland is now taking,” she said.
She called for dialogue on SNP’s wish to rebalance alcohol taxes in favour of higher-strength drinks.
Beer tax
“The vast majority of countries have tax regimes that provide more encouragement to consumers to switch to lower-strength drinks like beer - and we think this is the right direction of travel.
“And the First Minister’s comments last week in relation to alcohol duty, give us considerable cause for concern. Using beer taxes to try to deliver a 45p a unit minimum price, as has been suggested, would mean that the tax burden on all drinks would have to rise, including drinks sold in pubs.
“The duty-plus-VAT burden on pub beer would more than double, with beer duty, plus the VAT on that duty, topping one pound a pint. That would hit the moderate majority hard in Scotland – and certainly make it top of the European League for beer tax.
She said tax on beer in Britain is already eight times higher than in France, and twelve times higher than in Spain and Germany.
“What we need are policies that support moderate drinking in pubs, and tackle alcohol misuse among the minority of those who misuse alcohol.
“A new dialogue on these issues with the Scottish Government has never been more needed, and we will be working hard to achieve this in the coming months.”