Trade groups unite against Tory 'booze tax'
Rob Hayward, chief executive of the British Beer and Pub Association has written to the Conservative Party on behalf of several trade bodies to express concerns about Tory alcohol tax plans.
Hayward penned a letter to George Osborne the shadow chancellor, David Cameron the Tory leader, Iain Duncan-Smith and several other high ranking Conservatives after the party announced plans to raise money through increased tax on alcohol.
Several trade bodies have already slammed the plans saying they would only force people to go to supermarkets to buy alcohol at its cheapest.
Hayward's letter, seen by the MA and sent on behalf of British Beer & Pub Association, The Gin & Vodka Association, National Association of Cider Makers, The Scotch Whisky Association, The Wine & Spirit Trade Association, read: "I am writing on behalf of the five organisations above regarding newspaper reports concerning proposals for increased taxation on alcohol emerging from the Social Justice Task Force. We wish to register in advance our concerns on the adverse effect this would have on our sector.
. A general increase in taxes would also result in a move away from supervised drinking towards drinking which is less likely to be supervised. In this sense, the policy might well achieve the reverse to that intended. Rob Hayward's letter to George Osborne.
"While these proposals are undoubtedly well intentioned, we do not believe they would contribute to solving the problem of alcohol misuse, but would penalise the vast majority who drink in moderation and enjoy alcohol responsibly. They would however seek to price consumers out of the legitimate market, having a damaging effect on businesses in the sector. The alcohol and entertainment sector is a vital and vibrant part of the UK economy, comprising many companies and products that are national champions for UK plc. In this overall context, it is important to note that for the first time in many years, alcohol consumption has recently been falling, with a drop of five per cent over the past two years.
"The UK already has some of the highest taxes on alcohol in Europe, and indeed the world. Tax rates on all types of alcohol are already substantially higher than in almost all neighbouring countries, and in particular our nearest neighbour, France. Any significant increase in UK taxes would lead to a substantial increase in both legal and illegal imports, damaging the UK drinks' industry and heralding the return of the 'booze cruise'. As imports rose, such a move would also therefore open up a black hole in Treasury finances - and at the same time provide a substantial revenue stream for the French exchequer.
"Any approach designed to penalise all through higher taxes would meet resistance from the public. A general increase in taxes would also result in a move away from supervised drinking towards drinking which is less likely to be supervised. In this sense, the policy might well achieve the reverse to that intended.
"None of the above is to diminish the significance of alcohol misuse in our society. The industry is fully engaged with Government on the development of its alcohol strategy and the proposals that continue to emerge from it. Both the on and the off-trade have, through agreement with Government, introduced comprehensive social responsibility standards covering all aspects of the sale and promotion of alcohol, as well as pursuing and supporting many other campaigns and initiatives.
"While fully engaged with Government, we would equally welcome a similar level of engagement with the Opposition. Whilst we understand that these proposals are not Conservative policy, we remain concerned at the broad direction of the Task Force proposals. We would thus welcome the opportunity to meet with you and discuss these issues in greater depth. I will be in contact with your office to try to arrange a suitable date and time."
