'Beer tax an ineffective tool for fighting disorder'

Raising beer tax to stop crime and disorder is like taxing car manufacturers for motorists speeding — that is according to brewery boss Jonathan Neame.

At a Westminster conference to ramp up pressure on the Chancellor to drop plans for a controversial 2% above inflation duty escalator, the Shepherd Neame chief executive blasted the Government's policy as "politically, socially and economically wrong".

Neame called for a freeze on beer duty and for the 8% increase, introduced in the pre-budget report, to be reversed once VAT levels go back up.

"What an increase in beer tax does is shift consumption from the on trade to the off trade; from the controlled environment to an uncontrolled environment; from diluted alcohol, such as cask ale, to higher strength drinks like vodka," he said.

"As a tool for fighting crime and disorder, it is highly ineffective. It is like taxing car manufacturers for speeding on the roads."

He added: "We are not asking for a bail out. We are asking for a fair deal and fair taxation. The economic circumstances have changed and now the Chancellor must change his mind."

Getting the message​

Campaign for Real Ale (Camra) chief executive Mike Benner said he hoped the Prime Minister was finally getting the message after he recently said that the majority should not be penalised for the irresponsible behaviour of the minority in regard to minimum pricing.

Benner slammed the duty escalator as a "road to ruin" for pubs and a "grossly unfair" and "regressive" tax.

"This is Gordon Brown, who when he was Chancellor, introduced small brewers relief and then extended it in 2004 to the great benefit of the industry.

"He knows the industry and he knows the issues and seems to agree with us. It is time for action before it is too late."

Benner added that prices in the off-trade would not be affected by a duty increase. Since 1987 prices in the on-trade have risen 177% compared to just a 46% increase in the off-trade.

"Increasing beer tax is wrong because it penalises the responsible majority for the behaviour of the irresponsible minority."

Beer tie​

Both Benner and Neame admitted that a freeze on beer tax would not necessarily stop pub closures overnight. When questioned on the tie, Benner said: "We are very supportive of the tie. It has been in existence for over 100 years."

Camra revealed yesterday that it would approach the Office of Fair Trading (OFT) about using its super complainant status to ask for a full market review of the tie.

"Our position is there is lots of anecdotal evidence but we need facts and figures," said Benner. "We want to establish the facts."

British Beer and Pub Association director of communications Mark Hastings pointed out there had been 19 formal inquiries or reports into the tie since 1966 and four European reviews — all concluding the tie was "fit for purpose".

Neame added: "The vast majority of silent licensees recognise the benefits."