Alcohol tax rises put more than 75,000 jobs at risk

More than 75,000 jobs will be at risk if the Government proceeds with its plan to increase taxes on alcohol over the next four years, five trade bodies warned today.

In an unprecedented joint Budget submission, the British Beer & Pub Association, the Gin and Vodka Association, the National Association of Cider Makers, the Scotch Whisky Association and the Wine and Spirit Trade Association urged the Chancellor to abandon the 2% inflation escalator, scheduled to start next month, and to pledge no further increases in the next Budget.

The call followed a study into the effects of last year’s 17% rise in excise duty and the implications of the four-year tax escalator scheduled to start this year.

The five-year impact study by Oxford Economics predicts:

• A further 75,000 jobs at risk in the drinks industry
• A drop in alcohol sales by over 11%
• Consumer prices up 17%
• Tax revenue from alcohol £1.6b lower than original Treasury estimates

A spokesman for the five trade associations said: “We urge the Government to reconsider before it is too late for thousands of wage earners and their families. Our industry is being hit just as hard as any other UK manufacturing and retail sector.

“We are not asking for a handout. We only ask the Chancellor to abandon further tax increases which will force more job losses.”

The five groups have been called to a meeting with the Chancellor on March 16

Treasury's beer tax black hole to reach £1.2b as beer sales plummet >>

Beer tax hike a ‘kick in the teeth’, says BBPA >>

Trade attacks Tory proposals to hike beer prices >>

Industry fury at alcohol tax hike in Pre-Budget Report >>

By Daniel Thomas

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