Chancellor doesn’t give a XXXX for British pubs, says ALMR

The Association of Licensed Multiple Retailers (ALMR) has hit out at the chancellor for ignoring industry pleas not to raise beer tax and to not to change the VAT rate back to 17.5% on New Year’s Eve.

Nick Bish, ALMR chief executive, said today’s Budget shows that Alistair Darling does not “give a XXXX for Britain’s local pubs”.

“What we needed was a tonic from the chancellor: instead we have a double whammy of tax increases – with a penny a pint from midnight tonight and another toxic shock when the VAT cut is reversed at the end of the year,” he said.

The trade body also condemned what it described as “continued favouritism” being shown to other industries.

“The Chancellor has already spent 3.5% of GDP on bailing out the banks, £2bn to save the car industry, but he appears to baulk at investing in pubs and bars,” Bish said.

"Now we have investment in ‘green collar’ jobs and ‘low carbon’ technologies. The Chancellor must beware – all that glitters is not gold and it is questionable whether these new, ‘sexy’ industries will deliver lasting growth.” 

In contrast, Bish said, investment in pubs and bars is a “solid and reliable one”.

“Pubs bring local communities together and create thousands of jobs,” he added. “They also pay a great deal of tax.  It is about time that Mr Darling recognised a pub taxed into closure soon pays no tax at all.”

Stephen Broome, hospitality director at consultancy PricewaterhouseCoopers, said the pub industry will find the beer tax rise “difficult to swallow” at a time when six pubs are closing every day. 

“There is clearly a risk that the speed and rate of closures may now increase as it seems likely that pub customers will seek alternatives and may indeed drink more at home,” he added. 

See the full Budget document here >>

Let us know what you think. E-mail daniel.thomas@rbi.co.uk or join our new discussion forum Table Talk  

Budget: Beer tax rise signals 'death warrant' for UK pubs >> 

ALMR urges chancellor to delay VAT rises and freeze beer tax >>

Pub closures have cost the Treasury £242m in a year >> 

Hospitality leaders issue wish list ahead of the Budget >> 

Kitchen Rat on the Budget >> 

By Daniel Thomas

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