Stuart MacFarlane: It is time for the government to save, not destroy, the Great British Pub

Related tags Tax

We all know the story by now - the recession has hit the UK hard, and the British pub trade has been hit harder than most. But while other...

We all know the story by now - the recession has hit the UK hard, and the British pub trade has been hit harder than most.

But while other industries receive government bail-outs and taxpayer funded support, the pub trade has faced an unprecedented government onslaught with record tax increases -18 per cent in a year - coupled with the threat of increasingly burdensome and untargeted regulation.

The effects have been devastating - according to figures compiled by CGA Strategy in July, 52 pubs are closing every week in the UK, with 24,000 jobs lost in the previous 12 months as a result.

What's more, unsustainable taxation will hurt, not help, the government's own financial position. With an average annual tax bill of £107,000, open doors at our pubs mean higher revenues for the Treasury.

Of course, we all know pubs are about much more than generating tax revenue for government. Pubs are often catalysts for cohesion in our communities, as well as key partners in our efforts to promote responsible drinking such as the Stella Artois Get Home Safe campaign.

As an active member of the Portman Group, and a key funder of the Drinkaware Trust, we work hard and invest significant resources in promoting responsible drinking - and alcohol consumption has been falling steadily over recent years.

In this context, a broad and increasing tax burden is not the right response. Proportionate and targeted regulatory measures

with a strong evidence base - and robust impact assessments - are the way forward. Most of all, we would like to see existing rules enforced properly before new ones are introduced.

The challenges we face are real, and we, like other brewers, have had to make difficult decisions as we respond to the perfect storm of a prolonged economic downturn and record tax increases. At the same time we are continuing to innovate, with Beck's Vier and Stella Artois 4%, redefining the market with a strong premium offering in what was previously described as the 'standard' category. And even in the toughest trading conditions since the 1930s, pubs too are continuing to strive for excellence - such as those recognised last year in our Stella Artois Love your Local awards.

To the government, pubs may look like a tempting target when the public finances are tight, but increasing tax burdens will cause more pub closures and more job losses in the wider industry. Once pubs are gone, we know from experience they are lost for ever - and with them the hubs of our communities, of responsible and sociable drinking, and of our national culture.

It is time for the government to save, not destroy, the Great British Pub.

Related topics Legislation

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