Brexit: Beer prices could rise due to inflation

The Campaign for Real Ale (Camra) is stepping up its push to keep the price of a pint down for millions of UK pub-goers, calling on the Treasury to reduce beer duty by 1p. With inflation expected to rise in the next year, the cut will help to cap the price of beer, keeping more money in consumers’ pockets and helping the pubs and brewing sector to grow.

Beer drinkers are already being hit in the pocket, with Heineken and Carlsberg last month becoming the latest brewers to raise prices, following MolsonCoors – maker of the UK’s most popular beer, Carling – and ABInBev. The weak pound has also driven up the cost of imported raw materials such as hops, which could threaten Britain’s craft beer industry.

Beer duty campaigners have had some success in recent years with three consecutive penny cuts to duty and a subsequent freeze, but Camra points out that the UK is still paying among the highest rates of beer duty in Europe at 52.2p on a pint. This compares to other big brewing nations such as Germany and Spain, who enjoy their beer at under 5p of duty on a pint.

The brewing and pubs sector now supports nearly 900,000 UK jobs, and contributes £23.6bn to the economy every year. Camra is also calling for a reduction of up to £5,000 in business rates for pubs in England.

Colin Valentine, CAMRA’s National Chairman, said: “It is clear that previous cuts to beer duty have benefitted beer drinkers and supported significant growth in the brewing industry. However, we as a nation are still paying a notable amount – especially in comparison to our European neighbours.

“At the same time, pubs are confronted with higher taxation and cost, despite the vital role that they play in bringing our communities together and ensuring we are drinking responsibly.

According to the British Beer and Pubs Association, the depreciation of sterling will cause inflation, adding that “higher inflation will also lead to higher levels of indexation for taxes like beer duty, creating a vicious circle when it comes to cost pressures, which is why we are urging the Chancellor to cut beer duty on a pint by one penny in the budget”.