BEER AND PUB LEADERS WARN GOVERNMENT NEW “EYE WATERING” FEES ON BOTTLES WILL PUNISH CUSTOMERS AND STIFLE GROWTH 

 

 

The beer and pub sector has warned the Government that a new tax on beer bottles could lead to customers bearing soaring new costs. 

 

Industry leaders have written to the Secretary of State for the Environment, Rt Hon Steve Reed MP, to urge a review of these regulations and to sound the alarm around possible unforeseen consequences for brewers, for pubs and for customers.  

 

The British Beer and Pub Association (BBPA), Independent Family Brewers of Britain (IFBB), Campaign for Real Ale (CAMRA), and Society of Independent Brewers and Associates (SIBA), spoke up on behalf of their members, who collectively contribute billions to the UK economy. 

 

The proposed new fees will add “eye-watering” additional costs that brewers will be expected to bear from next year, they warned. 

Emma McClarkin, CEO of British Beer and Pub Association, said: “Our sector has ambitious net zero targets and is committed to a circular economy and working together to achieve this in a sustainable manner. 

“We urge them to review these fees and make them fairer and more sustainable, so we can continue to do business.” 

In a letter to the Government, trade associations advised that for 330ml glass bottles, the figures published will add between 3p and 7p on each of the 3.2 billion bottles of beer sold in the UK each year, a cost of up to £212m and with a midpoint estimate of £167 million. For heavier 500ml bottles, in which most premium bottled ale is sold, the costs could be up to 9p per bottle. 

 

This is the equivalent of a 8-21% beer duty increase on these products and, like beer duty, which is set to rise again in February, will inevitably lead to price increases for consumers and fuel inflation.   

 

Industry leaders warned that the cumulative impact of the proposed fees could see the end of many of Britain’s much loved bottled ales, dramatically reducing choice and more than wiping out any profit brewers were hoping to achieve in already extremely challenging times.  

 

Richard Bradbury, Managing Director of Theakston, said: "We understand the desire to tackle unnecessary packaging waste but the scale of charges, particularly on glass and the current plans for implementation could force out our Old Peculier beer and similar brands of the bottled beer market.