Government meeting breaks duty cut deadlock
The government has given its strongest indication yet of the possibility of cutting duty.
A meeting last week between trade leaders and Treasury minister John Healey was viewed as "the most productive" to date, with positive feedback suggesting the government is listening to the industry's arguments.
Rob Hayward, chief executive of the British Beer & Pub Association (BBPA), and a team of representatives from the brewing and pub sector presented a Budget submission which called for a freeze or a modest reduction in beer duty and an increase in progressive beer duty to 200,000 hectolitres.
Although he doubted whether significant changes will be made this year, Mr Hayward was impressed with the hearing.
A spokesman for the BBPA said: "We detected the government was listening more acutely to the argument surrounding a modest cut in duty in a way it hasn't in the past."
The meeting impressed again upon the minister that high UK beer duty promotes cross-Channel shopping and the black economy.
The BBPA welcomed the previous duty freezes in 2001 and 2002, and highlighted that they had benefited the Treasury.
Mr Hayward said: "We had a highly constructive meeting where, as well as presenting our submission, we touched on concerns regarding lease duty and minimum wage levels.
"A major area of discussion centred around the shift from on-trade to off-trade sales and its implications for the industry and the Treasury."
The date of the Budget has not yet been announced, but is likely to take place next month.
Pictured: Giles Thorley, chief executive, Punch Taverns; Rob Hayward, chief executive, BBPA; Stewart Gilliland, chief executive, Interbrew UK and Ebbe Dinesen, chairman, Carlsberg-Tetley.
