Government taxes and red tape are damaging Britain's brewing and pub sector as it grapples with one of its most severe periods of economic pressure on record, according to a new report published today.

This stark message comes in A Wake up For Westminster - a new and comprehensive analysis of the challenges facing the sector, by the British Beer and Pub Association (BBPA).

The report highlights the fact that pub beer sales have sunk to the lowest level since the Great Depression of the 1930s and that pub closures at five a day have reached unprecedented levels. But, it says, Government policies on tax and regulation have severely restricted business flexibility and are hampering the sector's ability to respond to economic change. And there are more in the pipeline. 

The report is critical of the fact that with business facing a shrinking economy and shaky consumer confidence, the current Government intention is to increase beer taxes by a third over the next four years and to introduce a raft of new red tape, such as a new mandatory code of practice, which will add even more layers of bureaucracy to how alcohol is sold in Britain. The BBPA argues that the inevitable impact of such policies will be to drive up business costs further and therefore force up prices for everyone. 

The BBPA is calling for the Government to abandon its plans for a beer tax escalator, as well as plans for new, mandatory codes of practice on how alcohol should be sold. They are calling on Government to focus on enforcing the existing rigorous laws, rather than create new ones. They say Government should start to support the Great British Pub as a vital part of local community life in Britain.

BBPA Chief Executive, Rob Hayward, comments:

"Beer is a great national industry, and pubs play a vital role in community cohesion and social life in Britain. They are frequently one of the few remaining places where communities come together to socialise.

"The economy is shrinking, drinking trends are shifting and overall consumption is sinking. Now is not the time for the Government to be introducing policies that will force up prices for all. When it comes to alcohol misuse, targeting the problem few, rather than penalising all adults would be far more effective and avoid driving more pubs out of business.

"The Government should abandon its plans for more punitive tax rises on beer, and should concentrate on enforcing existing laws rather than introduce new ones. We need action to support the Great British Pub as a vital part of local community life in Britain. If we don't have a change of approach, many more communities will be without their much-loved pubs."