Beer duty set to rise 9.4%

Trade leader Tony Payne has warned the Chancellor beer duty would rise to a massive 9.4% from 1 January if it isn't cut when VAT returns to normal.

The Federation of Licensed Victuallers Associations chief has written to Alistair Darling pointing out that VAT of 17.5% will be slapped on the 8% beer duty from 1 January. This works out at a rise of 9.4%.

It comes as support within the trade is growing for Payne's campaign to make the Government see sense on alcohol duty.

He wants duty reduced by 8% for beer, and 4% for spirits, when VAT rises from 15% to 17.5% at the start of 2010 and urges licensees, pubcos and other in the industry to get their MPs on board.

Payne said his call has gained the backing of a pubco that is to raise it at an upcoming meeting of the British Beer and Pub Association.

Ex-licensee Inez Ward, who runs the Justice for Licensees campaign, said she'll email all 365,000 JFL members urging them to contact their MPs in support of Payne's call.

"It's important for all sectors of the trade," said Ward. "The trade has been hit by increasing tax hikes for the last few years."

But she added: "I will be writing to the brewers and pubco executives that they must undertake for any decrease [in duty] to be passed on. It's not to go into their pockets. I'm doing this for the licensees and for the consumers."

Get involved — back the campaign for a fair deal​

• Find your MP's contact details here​. Post or email him the letter.

• Download the template letter by clicking here.