The British Beer & Pub Association (BBPA) has written to the government expressing concern at energy efficiency tax changes that could mean extra costs of £44mn/ year across the sector.
Published on 21 April, the letter concerns the abolition of the Carbon Reduction Commitment (CRC) announced at the Budget, and the need for the Treasury to recover the shortfall in revenue from elsewhere. This will mean increases in the Climate Change Levy (CCL) for businesses of 52% and 74% for electricity and gas respectively by 2019. The increases across the sector add up to £900/ year for each pub.
The BBPA is also calling on the government to establish clarity on the future intentions for CCL rates to 2025. Chief executive Brigid Simmonds said: “Energy policy is becoming an ever bigger issue for pub operators, and there are many changes coming down the tracks. It is important that both large and small businesses are given clarity and a fair deal. We are particularly keen to ensure that small pubs are not disadvantaged by the decision to abolish the CRC.”