Chris Ward MP wants Draught Relief on pub beer raised from 13.9% to 30% or more in the 28 October Budget. Brewers say it could add 3,400 jobs.

Chris Ward, the MP for Brighton Kemptown and Peacehaven, has joined independent brewers in asking the Chancellor to cut the tax on beer poured in pubs in the Autumn Budget on 28 October.

He backed the Drop the Tap Tax campaign at a Parliamentary drop-in this week, run by the Society of Independent Brewers and Associates (SIBA) and the Campaign for Real Ale (CAMRA), where MPs met brewers and industry specialists to talk about how the government taxes beer.

What the campaign is asking for

The lever is Draught Relief, the lower rate of duty on beer served from the tap. It currently stands at 13.9%, and independent breweries want it extended to 30% or more.

The campaign points to research by the Centre for Economic and Business Research (Cebr) which, it says, shows a bigger relief could create 3,400 jobs, add £137 million to the economy and see an extra 25 million pints poured.

The campaigners also say the UK lost 137 independent brewers last year, and that two pubs a day were closing at the start of this year.

Facts panel: Draught Relief is 13.9% now and independent brewers want 30% or more; Cebr research cited by the campaign says that could bring 3,400 jobs, a £137m boost to the economy and 25 million extra pints. Budget day is 28 October.
The Drop the Tap Tax ask in numbers. Graphic by The Brighton Times
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What Chris Ward said

Mr Ward said he had already met the owners of the Hand in Hand and SIBA before this week’s event.

“Our independent breweries and community pubs are a vital part of our local communities, supporting jobs, bringing people together and contributing to the local economy in Brighton Kemptown and Peacehaven,” he said.

“I previously met with the owners of the Hand in Hand and SIBA to hear first-hand about the pressures facing independent breweries. Those conversations gave me important insight into the challenges the sector is facing and issues I could take back to Parliament and raise with Ministers. That’s why I was pleased to meet with SIBA again in Westminster this week.

“With breweries and pubs facing significant financial pressures, it is right that the Government looks at what more can be done to support them and to give our local pubs and breweries a much-needed boost.”

Chris Ward MP and a man in a dark suit holding a sign reading Support local pubs and small breweries, #DropTapTax, in front of SIBA banners
Chris Ward MP, right, holding a #DropTapTax sign at the SIBA drop-in in Westminster. Photo: supplied by the office of Chris Ward MP

The brewers and drinkers

Barry Watts, Head of Public Affairs at SIBA, said: “I’m grateful to MPs for supporting local independent brewers and giving their backing to the Drop the Tap Tax campaign. Lower beer tax in pubs is working to reduce the pressures on the sector and expanding this support could encourage more people back to the pub as well as creating more jobs and helping the economy.”

Tom Stainer, Chief Executive of CAMRA, said: “We know that pubs are at the heart of communities across Brighton Kemptown and Peacehaven, bringing people together and helping to tackle loneliness and social isolation. CAMRA members will be delighted that Chris Ward MP is working to make sure that consumers, pubs and local breweries get the support they need to survive and thrive.”

What it means for you

Nothing changes yet. Whether Draught Relief goes up is a decision for the Chancellor, and the answer comes on Budget day, 28 October. The campaign is about the tax on beer served in pubs, and whether any saving reaches the price of a pint would be up to each pub.

If you run a pub or brewery in Kemptown or Peacehaven and want to tell us what the Budget means for you, send us your news.