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Budget 2009 news

Alcohol duty rise 'threatens jobs'

22/04/2009 22:05

The pub industry has attacked the rise in alcohol duty of 2% above the rate of inflation, saying it "signs the death warrant" for thousands of pubs and jobs.

According to Treasury figures, the rise will put 1p on a pint of beer or cider, 4p on a 75cl bottle of wine, and 13p on a 70cl bottle of spirits.

But the British Beer and Pub Association (BBPA) said the "final impact" of a pint in the pub was more likely to be 5p.

Chancellor Alistair Darling also announced a 2% rise in tobacco duty which will add 7p to a pack of 20 cigarettes.

Ahead of the Budget, the BBPA and the Campaign for Real Ale (Camra) ramped up their campaign to "Axe the Tax".

They said 2,000 pubs had been forced to shut in the past 12 months after tax rises aimed at combating binge drinking were introduced last year.

The industry believes the new tax escalator, which will see three more 2% rises in the next three years, puts up to 75,000 jobs at risk.

Mr Darling said the increases in alcohol and tobacco duty, combined with the increase in fuel duty, would raise more than £6 billion by 2012.

He said: "Taken together these measures will raise over £6 billion by 2012 to secure our economic future and to provide help for people now when .....continued below

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they need it most."

But Tory leader David Cameron said the alcohol duty was "going to hit every drinker in every pub".

The BBPA's Mark Hastings said: "Today's budget signs the death warrant for thousands of Britain's pubs and for tens of thousands of British jobs.

"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."

Mike Benner, Camra chief executive, said: "Well-run community pubs are already struggling as a result of last year's 18% increase in beer duty and the recession.

"This duty increase will simply fuel irresponsible drinking of cheap discount alcohol in people's homes, public parks and on the streets."

The chairman of London brewer Fuller, Smith & Turner, Michael Turner, said: "The Chancellor already makes 50 times as much out of each pint sold as the brewer does and this further increase cannot be justified.

"The British pub is the home of responsible drinking and the envy of the world. It should be cherished not persecuted."

He pointed to a recent poll which showed that 59% of all MPs - including 41% of Labour backbenchers - opposed the hike.

Society of Independent Brewers (SIBA) chief executive Julian Grocock said: "Today's 2% increase in beer duty - on top of the 17.8% hike imposed over the past year - will start to take its toll and damage the future prospects of many small brewers, who are just the type of sustainable businesses contributing to their local communities that the Government says it wants to support.

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2009 © Press Association

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