A charter for smugglers and cheap supermarket booze", says CAMRA

The Campaign for Real Ale (CAMRA) has hit out at the Chancellor's decision to increase beer duty by 4p a pint in today's Budget, along with annual increases of two per cent above inflation for the next four years.

The group claims the increase will lead to at least 20 pence on a pint over the bar, fuelling pub closures and increasing unregulated drinking as more choose to drink at home or on the streets.

This is the first time ever that beer tax has increased by 4p - a rise of 13 per cent.

CAMRA recently announced that 57 pubs are lost permanently every month as the price differential between pubs and supermarkets widens.

Mike Benner, CAMRA's chief executive, said, "The Chancellor has failed to recognise that well-run community pubs are the solution to Britain's binge-drinking problems.

"This budget will do nothing to stop binge-drinking, but it will lead to pub closures on a huge scale, widen the gap between supermarket and pub prices and encourage smuggling and cross-border shopping. It's a great big nail whacked ruthlessly into the coffin of the British pub."

The 90,000 strong consumer group has condemned the announcement that beer tax will increase above inflation for the next four years, despite what happens to UK pubs and the beer market.

Benner added: "Pubs are defined as local services et this tax rise alongside other market pressures will accelerate closures to unprecedented levels. The Budget shows a disregard for our national drink and for the 15 million people who enjoy it responsibly."

CAMRA called for a cut in beer duty in the Budget to help pubs compete with supermarket prices.

It said it believed that supermarket prices of beer are unlikely to be affected significantly by the tax increase, but pubs as small businesses, will have no choice but to increase prices at the bar.