Pubs ‘n' Bars chairman slams planned beer duty rise

30 September 2008 by Chris Druce

The chairman of pub group Pubs ‘n' Bars has added his weight to calls on the Chancellor to abolish the beer duty escalator announced in this year's Budget.

Seamus Murphy said the planned duty rise of 2% above inflation over the next four years could only make already tough trading conditions more challenging.

Speaking at the publication of the group's six month results, he said: "In view of the many difficulties facing the on-trade, I would strongly urge the chancellor to consider abolishing the beer duty escalator."

The British Beer & Pub Association is preparing to launch a campaign on the issue entitled Axe the beer tax.

With another poor summer, the effects of the smoking ban across the UK, weakening consumer spending and fierce competition from the off-trade depressing trade, the pub industry has been described as "in crisis".

Pubs ‘n' Bars saw turnover in the half year to 30 June jump 26% to £11.2m (2007: £8.9m) off the back of a series of acquisitions. Pre-tax profit at the 100-plus strong estate increased 7% to £580,000 (2007: £540,000).

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