Britain’s pubs pay an average of 34p for every £1 of turnover in tax, according to a new report from Oxford Economics. The figure is the second highest of 67 sectors studied.
The report, commissioned by the British Beer & Pub Association (BBPA) ahead of this week’s Autumn Statement, estimates that the industry’s total tax bill amounts to £7.3bn, or £140,000 for every pub. The total figure is £800m larger than the gambling and betting sector, it says.
Oxford Economics concludes that 'the pub industry was found to have a tax burden which was larger than a large proportion of the sectors studied in this report', with VAT, excise duty and business rates as the main burdens. Current business rates bills are based on valuations from 2008 trading performance.
The BBPA, alongside other industry bodies, has already written to the Chancellor ahead of the Autumn Statement, calling for a range of immediate reliefs on business rates. BBPA chief executive Brigid Simmonds said: 'This new report sets out the stark reality of the disproportionate tax burden bearing down on pubs. Without action to reduce this burden, more of our much loved community pubs will be under threat. The Chancellor has taken action on beer duty, and to relieve the burden of business rates on pubs in his previous two Autumn Statements, but there is no doubt that more relief and reform is needed.'