BBPA calls for Scottish government to rethink alcohol tax policy

The British Beer and Pub Association (BBPA) has called on the Scottish government to rethink its alcohol policy, amid concerns that politicians want to rebalance alcohol taxes in favour of higher-strength drinks.

At the 33rd European Brewery Congress & Exhibition Centre in Glasgow, Brigid Simmonds (pictured), chief executive of the BBPA, said: "The beer and pub trade is worth £1.5b to the Scottish economy every year, and 71,000 Scots depend on beer and pubs for work - you might be surprised to know that's double the number that depend on Scotch whisky for work, on a comparable basis.

"It's an absolutely vital part of Scotland's economy - and we want to keep it that way.

"We can create new jobs in Scotland, just at a time when the economy most needs it - and we certainly want to ensure a vibrant hospitably sector as Scotland gears up to host major global events in the near future, such as the Ryder Cup at Gleneagles in 2014 and the Commonwealth Games in Glasgow that same year.

"Yet to make the most of these opportunities, Scotland has to get the policy framework right. That is why we are concerned about the direction that some aspects of alcohol policy in Scotland are now taking.

"The SNP's expressed wish to rebalance alcohol taxes in favour of higher-strength drinks is an area where more dialogue is needed. The vast majority of countries have tax regimes that provide more encouragement to consumers to switch to lower-strength drinks such as beer - and we think this is the right direction of travel. This is a point I have already raised with the SNP Government, and will continue to do so.

"And the first minister's comments last week in relation to alcohol duty, give us considerable cause for concern. Using beer taxes to try to deliver a 45p a unit minimum price, as has been suggested, would mean that the tax burden on all drinks would have to rise, including drinks sold in pubs.

"The duty-plus-VAT burden on pub beer would more than double, with beer duty, plus the VAT on that duty, topping one pound a pint. That would hit the moderate majority hard in Scotland - and certainly make it top of the European League for beer tax.

"Tax on beer in Britain is already eight times higher than in France, and 12 times higher than in Spain and Germany. What we need are policies that support moderate drinking in pubs, and tackle alcohol misuse among the minority. A new dialogue on these issues with the Scottish Government has never been more needed, and we will be working hard to achieve this in the coming months."

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By Neil Gerrard

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