BBPA: Duty freeze is a welcome relief

The British Beer & Pub Association (BBPA) has welcomed the coalition government's decision to freeze alcohol duty.

Chief executive Brigid Simmonds said that the move will help the move came as a relief.

She said: "We applaud the government's decision to freeze beer tax and deliver on its promise made in the coalition agreement to not penalise pubs, responsible drinkers and important local industries. This is a welcome relief for struggling pubs during difficult times.

"A beer tax freeze will also help the beer and pub sector's ability to play its part in contributing to much needed economic growth and generating valuable private sector jobs."

Osborne, has however, hiked VAT by 2.5 per cent - a move Labour described as a tax on the poor.

Simmonds said: "The VAT rise is a price to pay for tackling the deficit and bringing Britain's balance sheet back in order. This tax increase is not welcome, but is understandable and applies to everybody. We hope this will be short-term pain for long-term gain.

"Once the nation's finances are back on a more even keel, we look forward to VAT rates returning to more favourable levels. We also look forward to the promised review of our alcohol tax system tax as an opportunity to rebalance our tax system to one that is more fair towards community pubs and our national drink - beer."

And Jeremy Beadles of the Wine & Spirit Trade Association also welcomed the move.

He said: "Today's announcement provides some relief for a sector that has faced substantial tax increases in recent years and I welcome the Chancellor's decision.

"Repeated tax hikes have produced less revenue for the Treasury and punished responsible drinkers, while failing to tackle the problem of binge-drinking."