Industry react angrily to the Budget

22nd April 2009, 1:39pm

The drinks industry has hit out at the government as the Chancellor announced that alcohol tax will increase by 2% as of midnight.

Mike Benner, CAMRA Chief Executive, called the decision disappointing: "It is disappointing that the Chancellor has ignored widespread public concern about the plight of Britain's pubs and decided to press ahead with an increase which will result in yet more valued community pubs closing down. Well-run community pubs are already struggling as a result of last year's 18% increase in beer duty and the recession. This further beer duty increase will push more valued pubs over the edge resulting in job losses, reduced Government tax revenue and many more deprived of their favourite local pub."

The British Beer and Pub Association called it a betrayal and said the budget has signed the death warrant for thousands of Britain's pubs: "In imposing these additional beer taxes, the Government has wilfully ignored the views of the public, landlords, consumer groups, industry representatives and MPs from all parties who have been calling for action to save the British pub.

"At a time when the rest of the economy is getting a supporting hand, the beer and pub industry is being singled out for punitive action. Last year the Chancellor raised beer tax by an eye-watering 18 per cent. Today's rise is a further body blow. The result will be more pubs closing, more jobs being lost and more people consuming alcohol outside supervised, licensed premises.

It is estimated that today's tax hike will raise duty on alcohol by around 40% by the time of the London Olympics in 2012.

The Wine, Spirit and Trade Association said it will continue to seek an end to the four year tax escalator, condemning today's announcement. WSTA chief executive Jeremy Beadles said: "At a time when the Government is offering other industries a helping hand it is extraordinary that it wishes to hurt the drinks industry with further tax increases.

"Thousands of jobs have already been lost in the industry and the decision to go ahead with a further tax increase puts thousands more at risk. It's a bitter irony that with falling sales, these tax hikes are unlikely to deliver the revenues forecast by the Treasury."

Related Articles:

• 23 Mar 2010 - 67% of British public want Government to scrap beer tax increase
• 18 Aug 2009 - WSTA to host low alcohol wine forum
• 29 Jul 2009 - Opposition to mandatory alcohol code is growing
• 29 Jul 2009 - Beer sales are beginning to improve, says BBPA
• 22 Jul 2009 - Pub closures rise to record 52 a week
• 01 Jun 2009 - New figures show UK near top of EU beer tax league
• 14 May 2009 - Unite supports pub beer supply investigation
• 13 May 2009 - MPs call for inquiry into 'beer tie' activity
• 29 Apr 2009 - Brakspear Pub Company to absorb Budget tax hike
• 28 Apr 2009 - Beer sales continue to slide
• 21 Apr 2009 - 'We have 48 hours to save the pub industry'
• 20 Apr 2009 - 90% of public want taxes reduced or frozen in Budget
• 18 Apr 2009 - Chancellor counts cost of £242 million tax loss from pub closures
• 15 Apr 2009 - MPS oppose beer tax rise
• 08 Apr 2009 - Tax rises will result in pub job losses
• 31 Mar 2009 - Sun advert launches 'Text the Chancellor' campaign
• 04 Mar 2009 - Record number of pubs closing
• 02 Mar 2009 - New poll shows public are backing local pubs
• 10 Feb 2009 - Over 100 MPs back the great British pub

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George C Purnell

23 April 2009 at 12:53pm

Having spent the last 45 years in the Licenced Trade, I am disapointed as others are with the decission to further increase the Duty on our products. Talking with my customers even they can't understand why supermarkets are allowed to buy at reduced prices and then sell on to the general public at rates that not one of us can compete with. If as most would agree, the problems relating to alcohol abuse eminate from these outlets, why are they not taxed on a different band, allowing pubs to trade on a more even playing field. Most landlords I have met contorl their busineses as it is in their interest, the same does not aplly to the likes of Tesco, Sainsbury or Asda, they sell the product and abandon any responsibilty for what problems they may provoke.

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