Industry group calls for freeze in beer duty escalator after 5.6% drop in sales in three months

The government has been accused of damaging the brewing industry after figures showed another fall in beer sales in pubs and supermarkets.

The British Beer and Pub Association (BBPA) blamed taxes for the 5.6% reduction in the past three months, and said there was an urgent need to freeze the beer duty escalator.

Around 117m fewer pints were drunk in the quarter to September compared with the same period last year, despite the benefits of the Olympics and Euro 2012 football championship, said the association, which warned the reduction in sales was hitting government revenues as well as jobs.

Beer prices have been affected by an “astonishing” 42% tax hike since the 2%-above-inflation escalator was introduced in 2008, said the report.

MPs are to call for a parliamentary debate on the impact of beer taxes, following a petition signed by more than 100,000 people demanding government action on the issue.

Sales of beer in pubs fell by 4.8% in the latest quarter, with 51 million fewer pints poured for pubgoers than in the same period in 2011, while supermarkets and off-licence sales were down by 6.5%.

Brigid Simmonds, chief executive of the BBPA, said: “If the government wants to encourage growth, back British business and support local communities, then it must end the beer duty escalator.

“The chancellor must listen to the thousands of people now calling for a change, so the sector can grow, create jobs and contribute more to UK plc.”

The government’s beer tax “escalator” policy means increases of 2% above inflation until 2014/15.