Showing posts with label Budget11. Show all posts
Showing posts with label Budget11. Show all posts

Wednesday, 23 March 2011

Beer tax rise is 'a kick in the teeth' say Welsh Brewers

The increase of two per cent above inflation in beer tax,announced in today’s Budget, is ‘ruinous’ to the nation’s thriving local brewing sector, ignores its contribution to the economy and puts thousands of jobs
 in breweries and pubs in jeopardy, says Buster Grant, Head Brewer of the Breconshire Brewery and Chairman of the Association of Welsh Independent Brewers, (AWIB).
Buster Grant said, “This is a real kick in the teeth to the local brewing sector, one of the few British success
 stories of recent years. Local brewers are just the kind of business this government says it wants to see
 prosper: they create jobs for local people and contribute to the local and wider British economy by using
 home-grown ingredients. Yet the current beer taxation regime is killing off our main route to market – the British pub.”
He continued, “The Treasury claimed before the Budget that their beer duty escalator is ‘baked in’. We say it is half baked!
Continuing to increase taxes on draught beer, drunk in the socially responsible environment of the pub, will serve only to increase purchases of cheap spirits for unsupervised home consumption. We fail to see how this policy can help tackle binge drinking. ”
Nick Otley, managing director of the family-run Otley Brewery in Pontypridd, said: “Although the price of petrol per litre has been reduced by 1p, which will help the delivery side of our business, it doesn’t offset the increase in alcohol duty. This is not the best outcome for small, family run breweries like ourselves. With the local brewing sector creating jobs for local people and contributing to the local and wider British economy, it comes as a surprise to us that the previous government’s escalator on alcohol duty remains unchanged.

AWIB, along with SIBA (the Society of Independent Brewers) and CAMRA (the Campaign for Real Ale) have all campaigned vigorously against the Government's ‘duty escalator’, which increases beer duty by 2% above inflation every year.

A budget for pub closures

George Osborne today announced that there will be "no change" in beer duty. A brief cheer went around the beerati on Twitter, but many forgot about the Duty Escalator, introduced by the previous Government, which will put inflation plus 2% on the price of a pint. So thats a 7.5% rise on a pint from Sunday, working out at around an extra 20p on a pint.
There is more to come as beers above 7% ABV will be taxed at a higher rate so some great award-winning beers from brewers such as Otley and Brewdog will cost more whilst 2% ABV cans of supermarket swill will be taxed less, despite their lower quality ingredients used and lower production costs than hand crafted ales.
All in all this is another budget that will do nothing to stem the pub closures now running at 25 a week.

SCRAP THE ESCALATOR AND SAVE THE PUB!

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