Drinks industry leaders meet with the Chancellor

17th March 2009, 9:39am

The chairmen of the UK's major drinks industry trade associations met with the Chancellor and Lord Mandelson in two separate meetings yesterday to discuss the upcoming Budget.

The meeting also saw the industry representatives put forward their views on the impact of tax rises and the economic slowdown on the sector.

Attending the meeting with the Chancellor were:

Michael Turner (British Beer and Pub Association)
Ian Jamieson (Gin and Vodka Association)
Fenella Tyler (National Association of Cider Makers)
Paul Walsh (Scotch Whisky Association)
Christopher Carson (Wine and Spirit Trade Association)

The meetings come just weeks after the drinks industry warned in its first ever joint Budget submission that over 75,000 jobs are at risk if the Government proceeds with its current plan to further increase taxes on alcohol over the next four years.

In the meetings yesterday, the drinks industry urged the Chancellor and Lord Mandelson to abandon the 2% above inflation tax escalator on alcohol due to start in April and called for no further increases in excise duty in this year's Budget.

In asking for a duty freeze, industry leaders argued that it is essential now to help businesses across the whole sector cope with the most testing economic conditions.

This will save jobs and help to sustain Treasury revenue that would be otherwise at risk as a result of falling alcohol sales, they said.

Research by Oxford Economics included in the industry's Budget submission examined the effects of last year's 17% leap in excise duty and the implications of the four year tax escalator scheduled to start this year.

Its impact study forecasts:

• 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 £1.6 billion lower than original Treasury estimates

A spokesman for the five trade associations said: "We appreciate the opportunity to make our case directly to the Chancellor and Lord Mandelson and hope that they will take a close look at the potential impact on employment of any further tax increases.

"The Government has a real opportunity next month to reverse its planned tax increases on the drinks industry to protect jobs and Treasury revenue."

Related Articles:

• 18 Mar 2009 - New figures show 3.2% fall in alcohol consumption
• 16 Mar 2009 - Prime Minister rejection of minimum alcohol pricing is 'hypocritical'
• 16 Mar 2009 - ALMR calls for ban on below cost selling
• 16 Mar 2009 - Minimum alcohol price plans to be unveiled
• 13 Mar 2009 - Taxation on pubs has gone too far, says Wetherspoon
• 12 Mar 2009 - 30,000 people support local pubs
• 04 Mar 2009 - Record number of pubs closing
• 02 Mar 2009 - New poll shows public are backing local pubs
• 26 Feb 2009 - Tories want to save the great British pub
• 10 Feb 2009 - Over 100 MPs back the great British pub
• 27 Jan 2009 - Beer sales down by 8.3%

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