Trade lobbies for beer duty freeze

Call for MPs to help struggling UK pubs and brewers

Trade groups are calling for a freeze on beer duty to help pubs and brewers cope with the smoking ban and other pressures.

Ahead of next month's budget, the British Beer & Pub Association (BBPA) and the Society of Independent Brewers (SIBA) have begun lobbying for the freeze to help struggling pubs and brewers.

BBPA director of communications Mark Hastings has written to every MP "to ask for support for Britain's national drink". He listed the pressures facing the industry during 2007, particularly the introduction of the smoke ban.

He also highlighted "rapidly escalating energy costs", which are "driving up costs", and adverse weather conditions, which have caused global barley crop failures, leading to price hikes of up

to 30%.

The letter pointed out that in 2005, tax on every pint was 59p and profit for the UK's four largest brewers was 1.6p per pint, down 50% on the previous year.

"This places in some perspective the potential impact of a 1p duty increase and the constraint it would place on the industry's ability to invest and grow."

Hastings added: "To help ease the pressures on British beer and arrest its decline, we are asking for a freeze on duty in the Budget and would like your assistance in pressing our case to Gordon Brown. It's time to give beer a break."

SIBA, which mainly represents smaller brewers, is backing the BBPA's stance. SIBA chairman Keith Bott said: "We think the industry is under pressure with the smoking ban and beer [sales are] likely to be affected by that.

"It's the first time we've ever had an industry-wide agreement in a budget submission. The whole industry is singing from the same song sheet."

The final date for the bud-get has not yet been set.

W&STA case

The Wine & Spirit Trade Association (W&STA) is calling for a duty freeze on wine, fortified wine, spirits and ready to drink (RTD) brands in its budget submission.

It said increases in wine duty in line with inflation over the last four years have had a "profoundly damaging effect on the trade". Trading in 2006 was "very tough", with slower growth leading to lower profits for producers and less investment in brands.

W&STA said UK duty on spirits was among the highest in the European Union and tax on spirits and RTDs "are at the point of tax maximisation" - both sectors are in decline so an increase in duty is unlikely to produce extra revenue.

W&STA called for any changes in wine duty to be announced earlier in the pre-Budget report because "abrupt change" imposes a "significant administrative burden on the industry". And it called for duty on sparkling wine to be aligned to that of still wine.

CAMRA pub closure survey - shock in store

Shock figures highlighting the number of pubs under threat of closure in the UK will be released by the Campaign For Real Ale (Camra) next week.

The group will publish its damning survey of just how many pubs could close their doors as a prelude to the launch of Community Pubs Week, which begins in nine days' time.

Camra will also publish the findings of a special poll that quizzed the public on how the advent of the smoking ban will affect their attitude to visiting pubs in the future.

The surveys tackle the burning trade issues of the moment and are timed for release during a week when the very future of community pubs are put under the microscope. Current figures point to an average of six pubs closing down every week but Camra's survey could paint a far worse picture.

MPs are also putting community pubs in the shop window by moving their weekly surgeries into the tap room. Six MPs have pledged their support and Camra hopes more will follow suit.

Community Pubs Week runs from 17 February to 24 February.

l Time to get involved - p8.