Tim Hampson's Beer Blog

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Budget flies in the face of facts

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Unless something changes George Osborne will put beer tax up again next year - inflation plus two per cent

In truth the rise in excise duty on beer come as no surprise. But that doesn’t stop it being a blow that will hurt some pubs and beer drinkers.

The harsh reality is that the average duty and VAT on a pub pint with now exceed £1. Beer tax has now been increased since 2008 by two successive Governments by over a third. The Prime Minister has promised a “pub friendly Government” with the pub at the heart of the Big Society.

Brewers and pubs are the kind of businesses 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 the route to market for most brewers – the pub.

The simple pleasure of sharing a beer with friends is being taxed out of existence. The treasury loses, brewing loses, pubs close.

The harsh fact is that unless the Treasury changes it course – in 12 months times the tax on beer will once again increase by the rate of inflation plus two per cent.

The duty escalator moves inexorably on – and it is ever upward.

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Written by timhampson

March 24, 2011 at 10:05 am

Posted in duty escalator

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