Mark Daniels: Profiteering from cider?
Once again, the Government's mixed messages about our trade are getting out in to the public arena, and the ordinary man in the street is becoming confused over whether his favourite tipple is going to be expensive. Or cheap. Or not.
Today, Labour have u-turned on the cider tax imposed in last month's budget. Alistair Darling's plan was to bring the level of tax up to match that imposed on beer, which meant - in real terms - a hike of 13% including inflation.
Given that most ciders already sit on draught at prices rivalling premium beers, such a hike was going to be stifling and prohibitive to growing sales in that market place, especially coming in to summer when warm weather usually encourages an increase in cider sales. Unless, of course, the tax was swallowed by the presses, suppliers and retailers.
But whether you think Alistair Darling's decision to level the playing field was admirable or not, a ten percent plus inflation hike was nothing short of scandalous. At least, if he was going to bring in such a rise, splitting the raise over two years might have been more palatable.
At least, that way, the Conservatives might not have got a bee in their bonnet over it when it came to the pre-election process of "wash-up", a concept I really ought to introduce to my two young boys.
The process takes place because an election is looming - in case you didn't hear yesterday, it's going to be on May 6th, meaning it'll be at least a week after that before we read any real news again - and allows the parties to trade which policies can be on the books before the election.
David Cameron's party don't like the cider hike, probably recognising that the alcohol trade in general is in turmoil and that a large chunk of their voters in this sector are looking for a reprieve. Therefore they managed to get the Bill from last month's Budget overturned.
On June 30th the tax will revert to being just 2% over the rate of inflation, yet Labour have announced already that should they win the next election they'll reinstate it with immediate effect. So, not thinking about votes from the pub trade there, then...
But the big question is - assuming that the Conservatives will honour their decision to get the tax dropped and not reimpose it themselves - will publicans and the off-trade lower their prices when the tax drops again?
Like petrol stations, many publicans chucked the price of their cider up at midnight on Sunday 28th March despite having stock already in the cellar with duty paid at the lower rate. But will those prices go back down at midnight on June 30th even though the stock in place will have duty paid at the higher rate?
Will it come down at all?
That's the question customers will be asking. And, if it doesn't, can we really blame them for becoming as ambivalent towards the pub trade as they are these days to the price of petrol and where to buy it from?
Beware The Fat Cats...
Did anybody see the reports in the paper over the weekend about the salaries and emoluments that the heads of unions achieve?
When moaning about the salaries received by the directors of pub companies its worth noting that the leaders of the unions we turn to for assistance when we're struggling don't have to worry about how much their kids' Christmas presents are going to cost either....
