Trade reaction to the Budget

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23/03/2011

13:42:42

The trade gives their views following the news that the Chancellor stuck to plans to increase duty 7.5%.
The Campaign for Real Ale, CAMRA
"It is incredible to consider that Britain's beer drinkers are forced to endure the second highest rate of beer tax in Europe, particularly when the Prime Minister promised a "pub friendly Government" with the pub at the heart of the Big Society," said chief executive Mike Benner.
"By penalising the vast majority of responsible pub goers, the Government is not getting to the root of the problem, which remains cheap alcohol sold in an irresponsible manner in the off-trade.
"While it is welcome to see the Government introducing measures to recognise the benefits of beer as a low alcohol drink, we hope the Government will work with the EU and the wider industry to secure a change in EU rules to increase today's threshold to 3.5% ABV to further benefit Britain's beer drinkers."
British Beer and Pub Association, BBPA
"In sticking to the failed

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24 replies - Last reply by Stephen Docking, 24/03/2011 15:23:23

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Replies

Gerry Price Price

24/03/2011

11:10:23

Trade reaction to the Budget

So of you are on a rent that goes up with RPI you will have a 5.2% rent increase, a 2.5 % VAT increase, a supplier increase of around 4% and approx 2.2% increase de to the duty rise in a 3 month period. Good job you weren't struggling in the first place and your turnover is increasing.

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Graham Allman

24/03/2011

11:11:32

RE: Trade reaction to the Budget

Stephen, having a long experience in such matters i do remember the days when just 3% of the pub stock was held on L & T Act lease agreements ( 53% now), with classic brewers tenants having to trade with a full tie and no chance of capital appreciation. Oh for the "good ole days" eh! Graham

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Jake

24/03/2011

11:36:23

RE: Trade reaction to the Budget

And no onerous FRI responsibility and no prospect of the capital loss the vast majority of tied lessees have suffered. Happy days indeed!

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Stephen Docking

24/03/2011

15:23:23

RE: Trade reaction to the Budget

There never was a real option for capital appreciation on a Brewers tenancy, but at least one could get a living out of it - often free of tie for spirits (not so much wine in those good ol' days unless you were Whitbread and had to stock 'Corrida' where the choice of red or white was invariably served at the same temperature!) - a handsome profit on limited catering, a building maintained without FRI, fewer costly regulations, limited opening hours, need I go on?

If the choice was a traditional old brewers tenancy versus a 'modern' pubco - I think I would rather wedge lighted matches under ALL my fingernails.

ps - where exactly is the capital appreciation to be found today - just wondering?

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