PUBLIC DEMANDS CHANCELLOR FREEZE BEER DUTY TO SUPPORT PUBS IN EMERGENCY BUDGET

PUBLIC DEMANDS CHANCELLOR FREEZE BEER DUTY TO SUPPORT PUBS IN EMERGENCY BUDGET

  • 75 per cent of the public support a freeze or reduction in beer tax
  • Beer industry and consumers unite as fears grow of 10p increase in price of a pint in pubs
  • 3,500 pub goers in just 48 hours lobby Chancellor urging him to freeze beer tax

 

Three quarters of the British public support a freeze or reduction in beer tax according to a new poll released today by the British Beer & Pub Association.

 

The poll also shows that 65 per cent of the public think that the Chancellor should support pubs by not increasing tax and 60 per cent say tax policy should support beer as a lower strength drink.

 

The findings, from ComRes, come the day before the Chancellor, George Osborne, is set to announce his first budget. There are fears that pubs face a "double whammy" in tax with VAT and duty increases.

 

A report released by Oxford Economics shows that an increase of VAT to 20 per cent in the Emergency Budget would have a devastating impact on the British beer and pub industry with the loss of more than 7,000 jobs a year.

 

An increase of VAT to 20 per cent and a rise of 2 per cent above inflation increase in duty would increase the price of a pint in pubs by more than 10 pence.

 

In an unprecedented move the British Beer and Pub Association, the Campaign for Real Ale and the Society of Independent Brewers have all united to call on the Chancellor to support Britain's beer and pub sector in the budget.

 

Last week 3,500 people lobbied the Chancellor in less than 48 hours via the 'I'm Backing the Pub' online campaign.

 

Brigid Simmonds, chief executive of the British Beer and Pub Association said:

 

"There is growing public anger at the prospect of a double whammy tax hike on beer.  With dozens of pubs closing every week across the country, such a move from the Chancellor can only mean more communities being hit.

 

"The Great British pub is the lifeblood of local communities and need support not another tax. Beer tax has increased by 26 per cent in the last two years alone and a VAT increase to 20 per cent would in itself put the price of a pint of beer in pubs up by six pence - and cost 7,000 jobs. A rise in duty on top would put up the price of a pint by more than 10 pence and would have an even more devastating impact on pubs and jobs.

 

"It is time for the Government to back the pub to help the economic recovery and support community life."

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Published June 21 2010

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