Pub organisations slam Budget rise in alcohol taxes

Pub sector groups have reacted angrily to the news in today's Budget that duty on wine, beer and spirits is to rise by 2% above inflation.

The Association of Licensed Multiple Retailers (ALMR) warned that increases in alcohol taxes blighted "any hope of increased sales for the average community pub". And it criticised the lack of action to combat low-price supermarket alcohol.

Chief executive Nick Bish said: “This is not a route map out of recession for pubs and bars. Each one of these employs about 10 people and together they contribute £9b a year in taxes. The pubs minister has drawn attention to the rate of pub closures and is proposing ways to stem the decline; but his colleague at the Treasury seems to go out of his way to reduce operators’ income and profitability.”

“The Chancellor, having reinstated the new higher VAT rate in January has further racked up prices by increasing duty rates on beer, wines and spirits by 5% from Sunday. This will translate into 10p increases per pint at the pumps with equivalent premiums for wines and spirits and this will drive price-conscious customers away from pubs and accelerate the downward spiral of sales in a beleaguered sector.”

The Campaign for Real Ale (Camra) also slammed the Government for the rise in beer duty - the equivalent of 5% when taking inflation into account. It complained that beer duty has now risen 25% in the past two years.

Camra chief executive Mike Benner said: "Today’s budget is a charter for the large supermarkets who irresponsibly promote alcohol as a loss leader at the expense of our nation’s community pubs, real ale and responsible pub goers.

"Camra is totally at a loss in understanding how a Government that recognises the community value of pubs can impose such consistently draconian beer duty increases.”

Camra also expressed concern at the 10% above inflation increase in duty on cider and called for Government action to support and protect small real cider producers.

Meanwhile, the British Beer and Pub Association (BBPA) chief executive Brigid Simmonds said: "Commenting on the Beer Tax increase announced in the Budget, Brigid Simmonds, British Beer & Pub Association Chief Executive, said: "This latest beer tax hike piles on the misery for Britain's hard-pressed pubs and beer lovers. It is also a snub to voters, who by a majority of two to one wanted the Chancellor to scrap the beer tax escalator.

"Since 2008, beer tax has increased by an eye-watering 26 per cent – a £761 million tax rise - and we have seen the loss of 4,000 pubs and over 40,000 jobs up and down the country. Beer sales are down £650m in the last year alone."

And the Society of Independent Brewers (SIBA) denounced the 2% above inflation rise in beer duty as the product of the Government’s ‘disconnected’ approach to local brewing and local pubs.

Drinks licences need changing to regain lost opening hour when clocks go forward >>

Drinks licences need changing to regain lost opening hour when clocks go forward >>

Amended licensing laws catch operators unawares >>


By Neil Gerrard

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