PUBS and breweries contribute more than £1.2bn to the region’s economy, a new report on the benefits of the industry to Britain has found.

The study for the British Beer & Pub Association (BBPA) found that there were about 3,200 pubs and 54 breweries in the North-East and North Yorkshire which between them employ more than 64,000 people.

The survey estimated that the pubs and breweries paid annual wages of £659m and generated £294m in VAT returns.

BBPA said the report showed that with so many local jobs depending on the trade, the Government should freeze beer duty in the upcoming budget.

They say that from 2008 to 2013, beer tax has increased by 42 per cent, with beer sales down 21 per cent, 7,000 pubs closing, and 58,000 UK jobs lost.

BBPA chief executive Brigid Simmonds said: “Beer and pubs provide huge numbers of local jobs, especially for young people.

“Last year’s duty cut made a real difference, saving jobs across the country, boosting investment and increasing confidence.

“Yet, so much of this good work will be undone if beer duty rises again.”

An early day motion has been put forward by the BBPA calling for the Chancellor to build on the scrapping of the beer duty escalator in 2013 by freezing beer duty in the 2014 budget.

“We need a duty freeze in the budget, and I hope all MPs will make the case for beer, pubs and jobs, and support early day motion 892 in Parliament,” said Ms Simmonds.

The motion has been signed by 62 MPs including Gateshead MP Ian Mearns, who is a sponsor of the forthcoming Gateshead Beer Festival on May 2 to 4.

He said: “I think it’s about supporting and promoting the independent pub and the microbrewery.

“They do provide a lot of employment and in doing so also promote responsible drinking.”

Nationally, the report by Oxford Economics reveals that 900,000 jobs depend on British beer and pubs – and almost half are younger workers aged 16 to 24.