More pub openings can help government raise cash

By Matt Eley Matt

- Last updated on GMT

Related tags Alcohol duty escalator Public house Alcoholic beverage Almr

Encouraging more pubs to open will bring in as much revenue for the government as increasing alcohol tax, according to a leading trade body. Since...

Encouraging more pubs to open will bring in as much revenue for the government as increasing alcohol tax, according to a leading trade body.

Since December 2006 there has been a 75 per cent drop in pub openings and the Association of Licensed Multiple Retailers (ALMR) today said that reversing that trend would create £203.5m for the Exchequer.

Next year the Chancellor is hoping to raise £505m through the alcohol duty escalator - half of which will come from pubs and clubs.

Speaking ahead of Monday's Pre-Budget Report Nick Bish, ALMR chief executive, said every new outlet opened would bring in £155,000 extra for the government each year.

"All the evidence shows that the alcohol duty escalator disproportionately affects bars and pubs, to the advantage of supermarkets offering bargain basement offers that fuel the very type of irresponsible drinking the government claims the duty hikes will stop," he said.

"Our industry is not here as a piggy bank to be raided every time Mr Darling can't make his sums add up. We need positive, innovative thinking - not crude smash and grab raids. If we could get back to the number of openings we had just last year, then the Chancellor could be raising the revenue he wants."

The ALMR has also published a Pubs Manifesto to outline a series of measures that it believes will help secure the future of British pubs.

These include:

• Stopping the alcohol duty escalator

• Banning below cost selling

• Cutting red tape

• Reforming business tax to help small businesses

Bish added: "There is action that could be taken right here, right now that would reduce the burden on pubs and increase new openings. That action is outlined in our Pubs Manifesto. Openings are not just in our own interest. A viable, profitable pub industry creates jobs, delivers a great service to the public, encourages more responsible drinking and also provides a sustainable revenue stream for the Treasury."

Related topics Legislation

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