Budget gets frosty reception from hosts and brewers

by John Harringtonand Ewan Turney

Licensees and brewers have hit out at the duty rises on beer announced in yesterday's Budget.

From 20 March, beer is set to rise by 1p a pint and wine up 4p a bottle, both in line with inflation. Duty on spirits, ciders and sparkling wine has been frozen.

The Campaign for Real Ale (Camra) said the duty rise on beer would hit pubs especially hard as it follows recent price hikes by major brewers.

The British Beer & Pub Association (BBPA) said a freeze on beer duty, which it had asked for, would have encouraged more people to buy beer ­ meaning more tax for the Government.

The BBPA also criticised the way wine, unlike beer, is not taxed in line with its strength, giving wine an advantage over beer.

BBPA director of communications Mark Hastings said: "It is very disappointing that Gordon Brown continues to choose a tax strategy that favours imported Australian Chardonnay over home-produced British beer."

Camra said the duty hikeon beer is a double blow for pubs in light of the wholesale price rises announced by Coors and Carlsberg earlier this year.

"A penny may not sound like much, but today's tax rise follows recent wholesale beer price rises by some brewers. Some pubs will now be charging as much as 10p a pint more than they were only a month ago," said Camra chief executive Mike Benner.

"Why should Gordon Brown cut his share of the price of a pint when big brewers keep on increasing theirs?"

The Wine & Spirit Association (WSA) said the duty rise on wine would hit the growth of the wine sector.

WSA director Quentin Rappoport also criticised the quick implementation of the price rises. "Small business will be hit even harder due to the four-day notice period for the increase, which will require round-the-clock administration to implement by midnight on Sunday," he said.

Glen Pearson, owner of the Shibden Mill Inn, Shibden Mill, West Yorkshire, said: "Brewers have already put in an increase that comes into affect on 4 April. It means that within one month we would have to increase our prices twice."

Tom Zsigo, owner of the Lion Inn at Trellech, Monmouthshire, said: "When you put 1p on a pint, by the time it reaches us it is a damn site more than that. If fuel prices go up as well, it costs more to get it to us, so it could go up 10p a pint at the pumps."

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