Drinks industry warns thousands more job losses

26th February 2009, 11:00am

The drinks industry has warned that over 75,000 jobs will be at risk if the government proceeds with its current plan to increase taxes on alcohol over the next four years.

The industry is urging the government to abandon the 2% over inflation tax escalator on alcohol due to start in March and pledge no further increases in excise duty in this year's Budget.

Research by Oxford Economics examines the implications of the four year tax escalator scheduled to start this year. Its five year impact study forecasts that there will be a drop in alcohol sales by over 11%, consumer prices will be up 17%, and tax revenue from alcohol will be £1.6 billion lower than original Treasury estimates.

The study shows tax increases have compounded the difficulties for an industry already facing record pub closures and thousands of job cuts in a deteriorating economic climate.

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."

Related Articles:

• 08 Apr 2009 - Tax rises will result in pub job losses

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