The leaders of the pub and drinks industries made a direct plea for a freeze in alcohol duty in meetings with the chancellor and business secretary yesterday.
Michael Turner from British Beer & Pub Association, the Gin and Vodka Association’s Ian Jamieson, Fenella Tyler from National Association of Cider Makers, the Scotch Whisky Association’s Paul Walsh and Christopher Carson from Wine and Spirit Trade Association represented the trade.
In the meetings, they urged the Alastair Darling and Peter Mandelson to abandon the 2% above inflation tax escalator on alcohol due to start in April and called for no further increases in excise duty in this year’s Budget.
In asking for a duty freeze, the industry leaders argued that it is essential now to help businesses across the whole sector cope with the most testing economic conditions.
This will save jobs and help to sustain Treasury revenue that would be otherwise at risk as a result of falling alcohol sales, they said.
The meetings come just weeks after the drinks industry warned in its first ever joint Budget submission that over 75,000 jobs are at risk if the Government proceeds with its current plan to further increase taxes on alcohol over the next four years.
A spokesman for the five trade associations said: “We appreciate the opportunity to make our case directly to the chancellor and Lord Mandelson and hope that they will take a close look at the potential impact on employment of any further tax increases.
”The Government has a real opportunity next month to reverse its planned tax increases on the drinks industry to protect jobs and Treasury revenue.”
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By Daniel Thomas
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