Pubs 'n' Bars urges Chancellor to drop duty hikes
Pubs 'n' Bars chairman Seamus Murphy has pleaded for the Chancellor to drop plans for the alcohol duty escalator.
Murphy has backed calls to Fight the Hikes
Murphy joined calls from the MA to "Fight the Hikes" as he announced a 26% increase in revenue to £11.2m for the year to 30 June. Operating profits rose 38% to £1.8m and profit before tax was up 7% to £0.58m.
However Murphy said the company would not be paying an interim dividend. "The wet and cool summer, the smoking ban, continued competition from cut price supermarket sales of alcoholic beverages and steeply rising gas and electricity prices, have had a considerable impact on our underlying first half performance and will continue to have an impact in the second half of the year.
“In view of the many difficulties facing the on-trade, I would strongly urge the Chancellor of the Exchequer to consider abolishing the beer duty escalator. As it stands, at a time of persistent inflation and possible recession, the duty is set to rise by 2% above inflation in each of the next four years.
"The effect of this is expected to make trading conditions more challenging."
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