Fair Pint challenges pubcos over beer tax cuts

Anti-beer tie group Fair Pint will support the British Beer and Pub Association's (BBPA) campaign for cuts in beer tax if pubcos commit to passing on any benefits in full to tenants.

The BBPA launched its "I'm backing the pub campaign" last week — part of which calls for a reduction in duty on beer but Fair Pint claims that duty cuts would "do nothing to help struggling pubs".

The 12-point manifesto, which is a departure from the single issue "Axe the Tax" campaign, was jointly launched with the Society of Independent Brewers (SIBA), with the backing of a host of other organisations including Visit Britain and UK Music.

Steve Corbett of Fair Pint said: "It seems that the BBPA is pretending to ask for money on behalf of community pubs but in reality the BBPA's pubco and brewery members are looking to empty the collection tin into their own pockets.

"The Fair Pint Campaign is calling upon the BBPA to issue a public statement assuring all publicans that if the government provide a concession in relation to duty then the concession will be passed on immediately, and in full, to publicans."

In response, BBPA director of communications Mark Hastings said it was "pleased" by Fair Pint's offer of support.

"Beer duty costs our sector over £3.1bn a year and since the Budget of March 2008, our tax bill has increased by £600 million.

"Those are huge sums of money to be extracting from the sector at any time, let alone during a recession and the people who ultimately pay that bill are our customers. It's importance is highlighted by the fact that both SIBA and CAMRA are actively campaigning with us on the tax issue.

"As the supermarkets learned to their cost with their milk price deal with the Government, it would be illegal for the BBPA to talk about or reach any sector wide deal on price with its members.

"At the same time, Fair Pint should be encouraged by the fact that many of our members — including the pub companies — have written individually to the Chancellor and committed to pass on duty cuts."

He added: "There are twelve policy propositions in the manifesto, covering a broad range issues.

"They cover things like rate reliefs, lower VAT rates on bar and food sales, social policy, local and community policy, tourism and cultural policy and alcohol policy. Two are specifically related to beer duty.

"The focus is to end any further tax rise through a call to end the beer duty escalator with its above inflation tax increases."