MA poll finds majority will absorb tax rises

By Steve Hemsley Fewer than half of licensees are planning to increase the price of beer or wine following last week's Budget. The trade has slammed the Chancellor's decision to add 1p to a pint of beer and 4p to a bottle of wine, and a straw poll by the MA has revealed that the majority of pubs will reluctantly absorb the increase, with only 44% of licensees questioned confirming they will definitely put up prices. Fear of adverse customer reaction in generally tough trading conditions is the main reason cited for pegging prices. Of the 28% who will charge more for beer, half will add 2p to the price of a pint while 36% have yet to decide on the size of any hike. Of the 16% of licensees planning to raise the cost of wine three-quarters had still to finalise the level of any increase while others will raise prices by between 5p and 10p per bottle. Trade leaders unanimously condemned the tax hikes by Gordon Brown. Shepherd Neame managing director Jonathan Neame called the jump in beer duty a tragedy and a cynical move by a cynical Chancellor. "It will make little difference to duty revenues and will reduce the Chancellor's other revenues like employment taxes which will fall as more pubs close or cut staff," he said. "Higher duty hits taxpayers, pub customers and staff, and the local communities that pubs serve. The only winners will be the smugglers and the French Treasury." His views were echoed by the British Beer & Pub Association whose members account for 98% of the beer brewed in the UK and own more than half of the country's 60,000 pubs. BBPA chief executive Rob Hayward said the increase in beer duty was a classic own goal by Gordon Brown and a move which would reduce competition. Budget in brief: l Beer up 1p per pint

Duty on a bottle of still wine increased by 4p

Duty on sparkling wine, cider and spirits frozen

Corporation tax and capital gains tax frozen