Brown's blow to duty cut

The trade was disappointed yesterday after Chancellor Gordon Brown failed to outline plans for a duty cut in next March's Budget.

Many licensees and trade campaigners had been hoping the Chancellor would use his pre-Budget statement to hint about a cut in alcohol duty, which would help bring the UK in line with France and other European countries.

Tony Jerome, spokesman for the Campaign for Real Ale, said: "It's disappointing the government still hasn't got the message about the social and economic costs of Britain's high beer tax policy, despite the sound arguments for reductions to cut out smuggling.

"It's essential that we all keep up the pressure for a reduction to take the smugglers' profit away. The social costs of a high beer tax are working directly against the government's policies to reduce anti-social behaviour."

Tony Payne, chief executive of the Federation of Licensed Victuallers Associations, was more positive. He said: "Hopefully he will leave duty the same next year which will, in real terms, be a reduction."

But despite the Chancellor's failure to mention alcohol duty he did announce a number of measures that could affect small businesses, including pubs.

In his statement, the Chancellor said he would abolish stamp duty for businesses in 2,000 regeneration areas of the country. The cost of investing for businesses would be cut and planning laws would also be relaxed in these areas, which are yet to be named.

Local authorities are set to be given an extra £8bn a year and will also be allowed to keep additional business rates from new businesses.

More small and medium-sized businesses will be eligible for loans and the government is expanding training and management courses for small businesses.