BBPA: Freeze beer duty to save industry
A trade body has called for a freeze on beer duty to help brewers and pubs deal with the "perfect storm" of declining sales, rising input costs and the smoking ban.
The British Beer and Pub Association (BBPA) told Chancellor Alistair Darling that beer sales were at a 40-year low - down 9.7% in November - even before the full impact of the smoking ban has been felt.
It said beer duty had now reached the point of "revenue maximisation" and that brewers profits had fallen to "unsustainable levels".
Calls for significant beer duty increases to tackle alcohol misuse are misguided, would encourage smuggling and fraud, and would be disastrous for the brewing industryRob HaywardBBPA
Profit per pint for some major brewers tumbled to just 1p in 2006.
Chief executive Rob Hayward (pictured) wants beer treated in a similar fashion to cider, which has seen duty frozen for the last four years, to help rejuvenate the sector.
"In recent years, Government has helped a struggling cider industry which is now flourishing," he said.
"We believe the case for similar treatment for the brewing industry, with its considerably greater impact on the UK and rural economy is at least as compelling."
Fair treatment
The BBPA also called for an end to the "unfavourable treatment of beer" compared to wine and spirits.
Beer is taxed on an upward scale according to abv, while wine is taxed in bands regardless of strength.
Hayward believes this "discourages the production and consumption of low-strength fermented beverages such as beer, making spirits the cheapest form of alcohol available".
He added: "We do not believe this is in the economic or social interests of the UK."
The BBPA also re-iterated its belief that a 10% hike in tax, as called for by the Alcohol Health Alliance, would not be beneficial.
"Calls for significant beer duty increases to tackle alcohol misuse are misguided, would encourage smuggling and fraud, and would be disastrous for the brewing industry," said Hayward.
• We, at the MA, are also petitioning the Prime Minister directly. To sign our petition click here No Tax Increase on Alcohol.
If you are on Facebook, join our group and invite your friends to by clicking here Facebook: No Tax increase on alcohol!
