Wales' pub and beer industry pumped £1.5 billion into the national economy but requires urgent Government support, according to research by a trade body.

The British Beer and Pub Association (BBPA) has issued a stark warning that despite the boost, without state help the sector may face even more burdens and restrictions.

The body has said that rising taxes and business costs leaves pubs making just 12p per pint.

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BBPA's research has revealed that the industry makes over £1.5 billion in Gross Value Added (GVA) and more than £1.2 billion in tax in a single year.

It has also poured over £34.3 billion in GVA into the economy and paying more than £17.4 billion in tax in just one year.

The figures, from 2024 Oxford Economics research, were notably up from the previous contribution of £1.3 billion.

However an additional crushing blow looms, with potentially astronomical packaging costs and a proposed beer garden smoking ban.

The BBPA urges a reduction in business costs and Government assistance to sustain the sector's valuable economic contribution.

CEO of BBPA, Emma McClarkin, said: "The Wales sector’s growth will underpin economic growth, which is why if the Government truly is business-friendly, it must recognise that pubs and brewers are shouldering multiple taxes and costs that are squashing growth and could lead to businesses failing."

She added: "There is no more meat on the bone to cut, which is why we are calling on the Government to reduce the cost of doing business so we can continue to make a massive contribution to the public purse."

The BBPA is pushing for a reduction in beer duty, reform of business rates, a commitment to maintaining 75 per cent business rates relief and the re-evaluation of a potential smoking ban.

Without intervention, the BBPA has said that the sector may face devastating EPR recycling costs next year, increased energy prices and restrictions that could force brewers to cease production.

While the industry contributes a substantial amount in tax, with £1 in every £3 spent in pubs going to taxes, it is also one of the most taxed business sectors per pound of turnover in the UK.