Beer Duty

Dear constituent,

Thank you for contacting me about beer duty and support for pubs. I know that this important issue will be of concern to many people in our area and across the UK, particularly in the current situation.

I wholeheartedly agree that pubs are at the heart of the UK’s communities and play an important role in our national economy. Indeed, I am aware that before the coronavirus pandemic, the pub sector was supporting 900,000 jobs, generating £23 billion in economic value and providing £13 billion in tax revenues.

In your letter, you highlighted that pubs face a range of tax pressures, including beer duty, business rates, and VAT. I believe it is deeply concerning that even before the current extraordinary situation pubs were under severe threat, with 18 closing a week.

As I am sure you will be aware, and pleased to know, the Chancellor froze beer duty at the Budget in March. However, as I am sure you will also appreciate, the coronavirus emergency has presented pubs with new challenges.

While the temporary cut in the rate of VAT from 20% to 5% for the hospitality sector is welcome, I believe the Government could do more. Indeed, I am disappointed that the Government has not provided bespoke support for sectors that have been, and continue to be, impacted most by necessary public health measures.

I agree that pubs are an essential feature of our national life and I am committed to giving them the support they need. I can assure you that I will continue to press the Government on this important issue at every opportunity.

Thank you once again for contacting me.

Yours sincerely

Peter Dowd MP