Brewers slam "schizophrenic" government

The Society of Independent Brewers (SIBA) has slammed the government for its "schizophrenic' approach to the local brewing industry.

Chief executive Julian Grocock said today's Budget showed no indication the government has taken note of the industry's plight.

"What the government gives the small brewer with one hand, in the form of Progressive Beer Duty and the Sustainable Communities Act, it takes away with the other through its punitive beer taxation policies," he said.

"It is disappointing that this Budget shows no sign the government has listened to our case and the powerful evidence supporting it."

He added: "The government claims it wants a thriving local brewing industry and indeed Progressive Beer Duty, introduced seven years ago, has helped the sector to grow.

"However, today's two per cent increase in beer duty - on top of the 17.8 per cent hike imposed over the past year - will start to take its toll and damage the future prospects of many small brewers, who are just the type of sustainable businesses contributing to their local communities that the government says it wants to support."

And the Association of Licensed Multiple Retailers also hit out at the two per cent hike.

Chief executive Nick Bish said: "The Budget proves that the Chancellor does not give a XXXX for Britain's local pubs. What we needed was a tonic from the Chancellor, instead we have a double whammy of tax increases - with a penny a pint from midnight tonight and another toxic shock when the VAT cut is reversed at the end of the year."

Meanwhile, anti-pubco campaign group Fair Pint said the two per cent hike on alcohol showed the industry's Axe the Beer Tax Save the Pub campaign has failed.

Tied licensee and Fair Pint member Steve Corbett said: "It is time for the debate to shift to how the removal of the tie and reform of rent reviews, would secure the long term future of British pubs."