Chancellor guilty of 'gross cultural vandalism'

The Chancellor's is guilty of "an act of gross cultural vandalism", according to Shepherd Neame boss Jonathan Neame.

Neame said the 8% duty hike, due on Monday to off-set the 2.5% VAT cut, was "vindictive" and "born of ignorance".

He said: "The Government continues to regard the Great British pub as a tax-collection point on one hand and a social problem on the other. They have no regard for the livelihoods of the thousands of people who work in Kent's pubs, nor the suppliers who rely on their trade."

"There is no good reason why brewers and publicans should be excluded in such a spiteful fashion. Pubs make an invaluable contribution to the Kent economy — they serve as a huge attraction to tourists and are the last bastion of community life.

"This Government's futile attempts to raise revenue have repeatedly failed; the 9% duty increase at the last budget has resulted in a £31m drop in revenue.

"At a time when unprecedented costs, inflation and the current economic crisis are threatening the survival of our industry, why is this government intent on throttling the life out of pubs and the communities they serve?"

Fuller's chairman Michael Turner added: "We already have the highest beer duty in Europe, and there is no justification for piling on another 8%. The Chancellor's increase in his spring budget of 9.1% coming on top of the smoking ban had already damaged beer volumes so badly that he is getting less income from beer duty than he did last year.

"The Treasury must stop raising taxes otherwise, as they must realise, they will kill the golden goose, and the traditional British pub with it.

"Before this latest increase the Chancellor was already making fifty times more out of each pint than the four largest brewers in the country."

Stuart MacFarlane, president of InBev UK, said:"We are deeply disappointed with the Chancellor's decision to increase duty on beer in the pre budget report — which is the second massive rise within a matter of months. It singles out our sector unfairly and does nothing to help the British beer industry as the country enters a recession.

"We have already suffered an unprecedented tax hike earlier this year- the Government should drop this unwelcome new tax."