BBPA: trade needs freeze on beer duty

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 & Pub Association (BBPA) told Chancellor Alistair Darling that beer sales were at a 40-year low - down 9.7% in November - even before the ban's full impact has been felt.

It said beer duty had now reached "revenue maximisation" and brewers' profits had fallen to "unsustainable levels". Profit per pint for some major brewers fell to 1p in 2006.

BBPA chief executive Rob Hayward wants beer treated like cider, which has seen duty frozen for the last four years, to help rejuvenate the sector.

"Government has helped a struggling cider industry which is now flourishing," he said. "The case for similar treatment for the brewing industry, with its greater impact on the UK and rural economy, is at least as compelling."

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".

Meanwhile, 65% of the public are against a rise in alcohol tax as a tool to combat alcohol-related disorder, according to a survey by ICM for the Wine & Spirit Trade Association.

l The MA is petitioning the Prime Minister directly. To sign our petition go to http://petitions.pm.gov.uk/taxonalcohol/. If you are on Facebook, join our group "Chancellor - don't increase alcohol tax!".