
The tax raids that mean your holiday beers are cheaper than British pints
At 61p per pint of lager, beer excise duties in the UK are among the highest in Europe, and are 9p more than in 2019, according to data from the Tax Foundation.
The rate is three times higher than in France, Italy and the Netherlands, which both tax around 19p per pint, and Germany, where consumers pay just 4p.
The tax raid contributes to the typically much lower prices holidaymakers will pay for beer on the continent this summer.
Whilst the UK has increased duties considerably, most of Europe has kept theirs effectively frozen, with Portugal increasing levies by 4p and France by just a single penny.
Exemptions made for draft pints served in pubs reduced duties to around 55p per pint, still almost three times the EU average.
Hospitality business leaders warn the combined cost of beer taxes, VAT and Labour's employer National Insurance hike could ultimately see the cost of a pint soar further.
The industry has lost 84,000 jobs since the 2024 Autumn Budget, according to the trade body UK Hospitality.
Kate Nicholls, the chairman of UK Hospitality, said: 'Beer duty in the UK has been among the highest in Europe, along with our 20% VAT rate for hospitality.
'These taxes and other recently increased business costs, such as the change to employer NICs, will mean that the price of a pint will stay high and potentially become higher, and pubs and bars will have no choice but to pass on costs to customers.'
In the Autumn Budget, Rachel Reeves increased the amount employers pay towards National Insurance from 13.8 per cent to 15 per cent.
The price of a pint has soared by over 28 per cent across the UK since January 2020, according to the Office for National Statistics, with a variety of factors to blame, including inflation and tax.
The average price of a pint now stands at £4.83, but this would be just £4.22 without alcohol excise duties, or £4.28 if served in a pub.
The figures also hide extreme regional variations, with the average price of a pint in west central London now topping £7.32, according to CGA, a market research company specialising in hospitality.
In the EU, minimum beer excise duties are set by Brussels, but the vast majority of EU member states chose to go above this.
In Finland, consumers pay roughly 90p per pint of 5 per cent-strength lager, by far the highest in Europe. This is followed by the UK on 61p, Ireland on 55p and Sweden on 48p.
At the bottom of the list are Spain, Luxembourg, Germany and Bulgaria, which all charge 4p per pint.
The Tax Foundation has monitored duties levied by states since 2019 and just seven states have increased taxes at 1p or higher over the period.
Alcohol duties were reformed in 2023, basing them on the strength of the alcohol. This meant tax on certain drinks, such as wine and spirits, increased considerably.
Taxes on draught pints were not changed in an attempt to keep prices below supermarket levels. Ms Reeves also cut duties on pints in pubs in the Autumn Budget by 1.7 per cent.
But bottled beer served in pubs or bought at supermarkets has not been exempt from tax changes, according to the Tax Foundation's analysis.
A spokesperson from HM Treasury said: 'Beer is more affordable in the UK than in much of Europe and in last year's Budget we supported pubs by cutting 1p off duty on draught pints.'

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Telegraph
10 minutes ago
- Telegraph
Quiet luxury is out and that's great news for Burberry
Questor is The Telegraph's stock-picking column, helping you decode the markets and offering insights on where to invest After a wild and scary ride, we are back to breakeven in our Burberry position. This gives us the option to check out of the British fashion icon without any undue portfolio damage, but it is early in the turnaround sought by chief executive Joshua Schulman. For the moment, we are inclined to give him and the company the benefit of the doubt, even if the headline financial figures do not entice at first glance. This month's first-quarter trading update was no great thing of beauty either. Comparable store sales for the three months to June fell 1pc year on year at the retail arm, and that came on top of a 21pc plunge in the equivalent period a year ago. Yet that was still better than the analysts' expectation of a 3pc decline. Moreover, it does seem as if things have stopped getting worse, and if they have stopped getting worse then at some stage they might just start getting better – especially if Mr Schulman's plans to reinvigorate the brand and product ranges come to fruition. At least 'quiet luxury' is out, according to this columnist's daughter's editions of Vogue, and a return to favour for luxury would at least provide a more encouraging backdrop, despite the uncertain macroeconomic environment. Last year's operating loss and absence of a dividend mean investors have to buy into the turnaround plan for them to be even vaguely optimistic about Burberry's share price maintaining its momentum – it is up 85pc in a year and by more than double from the autumn 2024 lows. A price-to-earnings ratio of more than 80 for the year to March 2026 and forecasts of a 6pc operating margin show just how much work the luxury goods specialist has to do after a terribly difficult two years. Analysts only expect a 12pc operating margin by March 2028, well below the 20pc-plus return on sales generated by leading plutocratic product makers such as LVMH and Richemont. A return to the 16pc level that prevailed between 2016 and 2021 would leave Burberry on 17 times 2028 earnings, and a dash to 20pc would put it on a tempting 13 times. Again, we are long way from that, but the worst may be behind Burberry and patience could yet get a reward. Questor says: Buy Genus (GNS) £24.75 We are off to a fast start with Genus and already have a paper gain of around 25pc to show for our initial analysis back in spring. This month's year-end update reads well and offers more than enough hints to suggest that our investment thesis for the genomics expert is still on the mark. The trading statement revealed that adjusted pre-tax profit for the year to June 2025 would be at least £72m, even though unhelpful foreign exchange movements cost the company some £8.4m. Of Genus' two divisions, Pig Improvement Company (PIC) continued to perform strongly, and the bovine-oriented American Breeders Service (ABS) showed some signs of improved momentum. In the latter case, things can hardly get any worse given that US cattle inventory languishes at 70-year lows. Any upturn here could bring benefits to ABS. Its expertise in genomics helps dairy farmers increase the chances of cows giving birth to female calves suitable for dairy production or young more suited to beef production. Perhaps most importantly of all, the trading statement flags the first tangible benefits of American regulatory approval from the Food and Drug Administration (FDA) for Genus' PRRS (Porcine Reproductive and Respiratory Syndrome) Pig Resistant Programme (PRP). FDA approval opens the way to the commercialisation of PRP and is already triggering milestone payments from partner companies, as evidenced by the £3.7m received from Beijing Capital Agribusiness. Such payments should help cash flow, too, and, as a result, chief executive Jorgen Kokke signals a reduction in net debt in this month's update. This is a further boost for the investment case, as Genus' record for free cash flow generation in the past few years is spotty at best. If the investment in PRRS starts to pay off, then cash flow could blossom and a reduction in debt would reduce net interest costs and provide a further kicker to profits growth. As it is, the forecast of £72m in pre-tax income for the fiscal year just ended would be a record for the FTSE 250 index member, yet the share price still stands at less than half 2021's peak, even after the recent run.


Sky News
38 minutes ago
- Sky News
Revealed: The scale of cheap Chinese imports flown into UK without paying any tariffs
The scale of cheap Chinese e-commerce imports flown into Britain without paying any tariffs has become clearer following a Sky News investigation into this new multi-billion pound phenomenon. We have uncovered the first official estimate of the value of so-called "de minimis" imports into Britain, ahead of an official inquiry into whether this legal clause - which excludes packages worth less than £135 from paying customs duties - should be allowed to continue. Companies like Shein and Temu have become big players in British retail, not to mention elsewhere around the world, by manufacturing cheap products in China and then posting them directly to consumers, benefiting from the de minimis rules. Clothing manufacturers in the UK claim that de minimis makes it nearly impossible to compete with these Chinese competitors, raising questions about the viability of domestic textile and apparel production. However, economists argue that the main beneficiaries of the policy to exclude cheap imports from customs are lower-income households, since it allows them to spend less on their shopping. Removing it, they say, would disproportionately affect poorer families. The government has committed to an inquiry into the rules, which are also being changed in the EU and the US, but up until now there has been no official estimate of its scale. According to HM Revenue and Customs data released to Sky News following a Freedom of Information request, the total declared trade value of de minimis imports into the UK in the last fiscal year (2024-25) was £5.9bn. That was a 53% increase on the previous year (£3.9bn), underlining the scale of growth of e-commerce imports into the UK. While it is hard to gauge how much revenue this means the Treasury has forgone, an illustrative 20% tariff on flows of that order could raise more than £1bn. While that sum alone would not fill the fiscal black hole faced by Chancellor Rachel Reeves in the coming budget, it would nonetheless be nearly enough to pay for the government's recent U-turn on winter fuel allowances. Sky has also obtained the first television access deep into the supply chain, helping bring those goods into the UK, as it boarded a flight that had just travelled from Chongqing to Bournemouth Airport. We filmed inside the belly of a plane belonging to European Cargo, one of a number of air cargo firms booming as a result of these trade flows. The untold story about de minimis is that it hasn't just had an impact on shopping habits in the UK, or for that matter, the textiles manufacturing sector - it has also changed patterns of distribution. Struggling regional airports that never saw their passenger numbers recover after the pandemic are now re-establishing themselves as hubs for cargo. European Cargo is now the single biggest airline at Bournemouth Airport, despite not carrying a single passenger. Other regional airports like East Midlands Airport and Prestwick in Scotland are seeing rapid growth in flows of trade. All of which raises the stakes for the government's inquiry into the de minimis system. At present, there is no timeline for its decision, but removing the clause would have far-reaching effects across the economy.


Reuters
40 minutes ago
- Reuters
Swiss chemical maker Sika's half-year sales falls, misses analyst estimate
ZURICH, July 29 (Reuters) - Sika (SIKA.S), opens new tab reported lower half-year sales and profit on Tuesday as the weaker dollar shrunk the construction chemicals maker's earnings when converted back into Swiss francs. The company, which makes products used to strengthen and waterproof walls and floors, said its sales fell 2.7% to 5.68 billion Swiss francs ($7.08 billion) in the six months to June 30. Analysts had forecast 5.72 billion francs, according to a consensus compiled by Vara. ($1 = 0.8026 Swiss francs)