VAT hike will add 6p to a pint of beer

By John Harrington

- Last updated on GMT

Related tags: Bbpa chief executive, Pint, Pint glass, Public house, British beer & pub association

Pint of beer could go up by 6p a pint
Pint of beer could go up by 6p a pint
BBPA says Darling's failure to act on beer tax will add 6p to a pint when VAT rises on 1 January.

The Chancellor's failure to grant a reprieve on beer duty will mean beer will go up 6p a pint, says the British Beer & Pub Association (BBPA).

In response to today's Pre-Budget Report, BBPA chief executive Brigid Simmonds said: "The VAT increase will put at least 6p on a pint of beer.

"We also face a further two per cent above inflation beer tax rise in the Budget early next year. Beer tax already accounts for around a third of the price of a pint and these increases will put yet more pressures on hard pressed pubs and consumers.

"The industry had to endure an 8% increase in beer duty last December, which canceled out the VAT cut enjoyed by every other sector.

"Since the Budget of 2008, our tax bill has gone up by £600 million during one of the deepest and longest recessions in living memory.

"Taken together, this amounts to a stealth tax on brewers, pubs and their customers. It is time for Government action to support the economic, community and social value of pubs."

Related topics: Beer

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