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Decision to scrap beer duty escalator welcomed

March 21, 2013 10:31 PM

The announcement yesterday by the Chancellor in the budget statement of the scrapping of the unfair beer duty escalator and a 1p reduction in beer duty has been welcomed locally.

Cllr David Gould (Lib Dem: Barwell), who last November put a motion to Hinckley and Bosworth Borough Council calling on the government to scrap the beer duty escalator, welcomed the news.

David Gould said "Following all the hard work by so many groups,

including the local branch of CAMRA, to see the beer duty escalator scrapped in the 2013 budget, I am absolutely delighted that the Chancellor, George Osborne has today listened to the arguments against this unfair tax and brought it to an early end and reduced beer duty by 1p.

"It has been evident to see that as a result of the reduced duty under the Small Breweries Relief we now have a thriving brewing industry, with over 1,000 breweries in the UK, the most the UK has seen for over 70 years. This clearly shows that lower duty leads to growth, investment and jobs in the brewing sector and I am delighted that the chancellor has made a vote of confidence in Britain's breweries."

Lib Dem Parliamentary Spokesman Cllr Michael Mullaney supported the move "It is good news for pubs, as supermarkets were able to absorb the increase in the price of beer, pubs were simply not able to and this was further increasing the difference between a can of beer in the supermarket and a pint in the pub, which is a controlled and sociable environment. So I am delighted that it has today being brought to an end.

"It is now essential that the benefit of scrapping the escalator are passed on to pubs. Too many pubs have closed in recent years. We now want to hear from all the large pub owning companies that they pass this on to licensees by looking at their own prices lists which will help publicans and help pub customers".

The beer duty escalator is an increase in tax on beer by 2% above the rate of inflation

introduced in 2008 and in place until 2014/15. As a result, tax on beer has gone up by over 40% since 2008.

The beer duty escalator has proven damaging to brewers across the country and led to increases in beer prices. These price increases are absorbed by the supermarkets, however, pubs are simply unable to do this which can further increase the difference between a can in the supermarket and a pint in the pub and figures clearly show that people are now being put off by the price of beer in some pubs.