New figures show the beer and pub industry supports 160,000 jobs across London

London’s beer and pub sector “urgently needs” the upcoming budget to help it so it can keep people in work, a trade body has warned.  

New figures from Oxford Economics research show that the industry supports 160,000 jobs across London, an increase of more than 55,000 prior to Covid-19, up from 105,200.

These figures demonstrate that people around the country depend upon the industry to keep them in work and put money in their pockets, the British Beer and Pub Association (BBPA) has claimed.   

But despite this, pubs make an average of just 12p on every pint of beer once taxes and costs have been deducted.   

The BBPA is now calling for a reduction in the soaring costs of doing business. It says the industry needs next month’s budget from Chancellor Rachel Reeves to help it continue to invest in business and people, and remain a home away from home in communities across the country.    

Emma McClarkin, CEO of the BBPA, said: “Our brewers and pubs are helping people around the country earn money, gain skills and experience, and support both the local and national economy.

“From those pulling pints to the farmers growing the hops, so many rely on our treasured beer and pub sector for their livelihoods and careers.

“But for the job market to flourish – and for us to keep supporting those jobs – it’s vital our sector is given the support it needs to continue.  

“We are urging the government protect the Great British brewing and pub sector – the beating heart of our communities – to ensure it can remain a driving force for growth, jobs, investment and social value whilst keeping the price of a pint affordable for all.” 

The BBPA is calling on the government to use the upcoming budget to cut beer duty, reform business rates, and pledge to keep the 75% business rates relief so that pubs and brewers can keep people in work and support more jobs.

A 5% cut in beer duty in the upcoming budget, it says, would result in up to 12,000 additional jobs across the UK, mainly in pubs. This is due to the dynamic effects of increased prices at the bar reducing demand from consumers, who are sensitive to costs rising. Decreased demand for drinks in pubs leads to closures and job losses, so keeping the price of a pint affordable will allow the sector to thrive and employ even more people.

The BBPA warns any additional price increases, on top of the inflationary pressures of the last few years, would tip many beer and pub businesses over the edge. 

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