Industry groups unite over call for Budget duty concession

Three industry groups are sending a joint letter to Chancellor George Osborne urging him to consider a "compensatory" cut in beer duty if VAT is increased in the emergency Budget.

The British Beer & Pub Association, CAMRA and the Society of Independent Brewers (SIBA) have all put their name to the letter, ahead of the June 22 Budget.

It is understood the letter, expected to be sent this week, calls for beer duty to be cut to offset any rise in VAT.

Many fear the Treasury could hike VAT to 20 per cent, which would force pubs to yet again put their prices up.

One industry insider said it was "nice to see trade bodies singing from the same hymn sheet" on an industry issue.

Iain Loe, CAMRA's research and information manager, said: "Beer drinkers have suffered enormously. People will just be getting back into going to the pub with the World Cup so this will be a kick in the teeth when they should be celebrating England's success.

"It's not about a tax giveaway, it's about fairness."

Julian Grocock, SIBA's chief executive, said he wanted the government to "compensate" the beer sector. "It will be a real own goal making beer more expensive in the pub, as it will not affect the off-trade as much," he said.

It is understood CAMRA also submitted its own individual submission to Treasury minister Justine Greening two weeks ago calling for VAT and duty not to be put up in the Budget.

The BBPA is also planning to launch a campaign later this week in a bid to attract public support for concessions on beer duty in the Budget, based on the fact it will increase prices during the World Cup.