Another Budget, another industry campaign falls on deaf ears

By Hamish Champ

- Last updated on GMT

Related tags Better

Looking at the latest Budget can those lobbying the government hope to learn any lessons on how better to get its message across? Given Jonathan...

Looking at the latest Budget can those lobbying the government hope to learn any lessons on how better to get its message across?

Given Jonathan Neame's comments about how the pub and drinks industries pressed their case and the quality of the argument proffered the answer would appear to be a resounding 'no'.

Neame said he'd thought the government had been persuaded of the sector's economic case to the extent that officials had accepted what was being said about creating - and saving - jobs and whatnot by not raising duty. The hope had been that George Osborne would respond accordingly.

It was not to be. The argument about job losses and pub closures fell on deaf ears. Again.

But should we really be surprised? After all, the government has oft stated its aim of deficit reduction as part of it return to growth programme, and the reality is that despite the industry's lobbying efforts the government was always going to look at what it could get out, not what it would relinquish.

What can the industry do to improve its chances of success next year? Hope for an improvement in the UK's economic fortunes? Perhaps.

The Treasury reckons the effect of the escalator will be to boost the public coffers to the tune of £110m in the tax year 2013/14. The figure for this year is estimated at £100m.

The Office for Budget Responsibility (OBR) says duty raised via sales of spirits in the coming year will be £2.7bn, wine will generate £3.3bn, and beer and cider will generate £3.7bn.

However the pub and drinks industries reject the government's model for revenue generation, arguing there'll be a £40m hole thanks to the Chancellor's move.

This may be true, but those pressing such arguments must somehow find another way into the hearts and minds of the Treasury and Number 11.

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