BREWERS and landlords have attacked the Chancellor over his “disgraceful” increase in alcohol tax.

In Monday’s Pre-Budget Report, Alistair Darling announced there would be an eight per cent rise in the tax, meaning duty has now risen 17 per cent this year.

Brewers and publicans have warned that their costs could soar and said the price of a pint will go up.

The trade also said the tax rise would swallow up the benefits of the cut in VAT from 17.5 per cent to 15 per cent that Mr Darling also announced.

Chris Hearn, owner of Loddon Brewery in Dunsden, said: “It is an absolute disgrace. People tend to forget that duty went up earlier this year and it will go up again in March at two per cent above inflation.

“In 12 months it will have gone up 19 per cent, which means publicans in the UK will suffer.

“We have no choice but to pass on costs to customers.

“As far as I am concerned Mr Darling is trying to kill off the British pub, while claiming he supports small businesses. It is a slap in the face.” Jeff Rosenmeier, founder and head brewer of Lovibonds brewery in Greys Road car park, Henley, said: “Once again, the Government shows a general lack of respect for what we and other small businesses do.”

Aaron Beattie, who took over the Queen’s Head pub in Henley in August, said: “It is criminal — that’s the only way to describe it.

“I will have to increase my prices and I can honestly see the price of a pint rising by anything up to 10 per cent.

“It is now becoming too expensive to provide people with enjoyment.”

Don Bridgeman, chief executive of the Brakspear pub company, said: “It is yet another stealth tax on publicans, customers and the industry. It will reduce sales.

“It seems like another attempt to destroy the community pub.”

Leading industry figures also rallied against Mr Darling. Julian Grocock, chief executive of the Society of Independent Brewers, said: “It’s entirely predictable. The Chancellor instantaneously balanced the VAT cut by the increase in duty.

“He obviously thinks it’s worthwhile to reduce VAT to stimulate the economy and help small businesses in every area except for fuel, tobacco and alcohol. Effectively he has taken no action whatsoever for our benefit.

“All this trumpeting about doing something to help small businesses — why is the brewing industry not included? We’re just as much in need of stimulus as everyone else.”

Mike Benner, chief executive of the Campaign for Real Ale, said: “The Chancellor’s refusal to allow beer drinkers to benefit from a VAT reduction means that 7,500 pubs could close by the end of 2012.

“The Government’s failure to support pubs will undermine community life, ruin livelihoods and deprive people of an affordable night out at a local pub.”

Nick Bish, chief executive of the Association of Licensed Multiple Retailers, added: “It is disgraceful, completely astonishing.”


Published on 01 December 2008