Harrogate beer sector joins calls for Chancellor to act in Spring Budget to prevent '2,000 pub closures' danger

Ian Fozard, of award-winning Rooster’s Brewing Co, which is celebrating its 30th anniversary this year, said he fully backed the BBPA's calls to the Government to use the Spring Budget to deliver a plan for sustainable growth with fair, modernised tax rates and a focus on skills and training needed to ensure pubs and breweries can thrive.

New data from Oxford Economics estimates that beer sales will decline by 9% in 2023/4 with a total of 288 million fewer pints sold in because of the challenging economic picture.

Potentially, this will lead to 25,000 job losses in the pub trade and 2,000 pub closures, claims BBPA.

Mr Fozard, ex-chair of the Society of Independent Brewers, said beer duty reforms were a key part of avoiding a gloomy scenario triggered by record energy bills, high inflation and low economic growth.

“I’d like the Chancellor do anything possible to lower the tax burden on small businesses especially business rates,” he said.

"These are especially punitive as you pay them whether you are profitable or not.

"You receive no services in return, unlike Council Tax.

"It’s also important for the Chancellor to implement the proposed beer duty reforms in full.”

Chancellor Jeremy Hunt will deliver his Spring Budget to Parliament on Wednesday, March 15 with a bulging in tray of demands for more public spending across a wide variety of sectors.

The hospitality sector in general and drinks industry, in particular, have been calling for more help to trade successfully just as the Government is set to scale back support for businesses with energy bills from April.

The Beer and Pub Association is calling on the Chancellor to freeze duty rates, implement a significant increase in the discount for draft beer sold in pubs, and introduce the previously announced reduced rate for lower-strength beers from August 1.

An independent, family-run independent business located at Hornbeam Park in Harrogate, Rooster’s was an early pioneer of the craft beer revolution in the UK and has evolved over the last three decades from a corrugated metal building to a £850,000 state-of-the-art brewery and taproom.

But Mr Fozard also believes it’s time for the Government to equalise the duty regime between beer and cider.

"Cider duty is currently only 46% of that of beer,” said Mr Fozard who runs the independent brewery with his two sons Tom and Ol.

"Even the smallest brewer who gets full small brewers duty relief pays more duty per pint than global cider makers, for example, Bulmers which is owned by Heineken.

“The Society of Independent Brewers estimates that the Chancellor could raise an additional £350m a year by equalising the two duty rates - which would pay for a few nurses!"

Ahead of the Government’s Energy Bill Relief Scheme being reduced from April 1, the Beer and Pub Association is highlighting the poor practice of energy suppliers and the ongoing impact soaring energy costs is having on the industry, insisting that the Government holds suppliers accountable and fix a broken system that is penalizing hospitality businesses.

More information: www.roosters.co.uk/