Adnams criticises Government over its "misguided" policies over beer duty

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Related tags: Duty escalator, Public policy

Adnams criticises Government over its "misguided" policies over beer duty
Adnams, the Suffolk brewer and pub operator, has criticised the government, which its says seems to be intent upon “continuing its misguided policies regarding beer duty”.

It also said that the duty escalator had “exacerbated another unfairness” for medium sized brewers.

Chairman Jonathan Adnams said: “The ‘duty escalator’ (tax increases at a rate 2% above inflation) has remained in place to the cost of brewers and pubs, not to mention their customers. Pubs are important employers and this policy has also imposed a cost on many of our unemployed younger generation who are being denied the jobs that they might otherwise have had in the hospitality industry.

“The duty escalator has also widened the differential between UK duties and those elsewhere and produced a predictable escalation of duty fraud, now estimated at £500m per annum. Rather than addressing the root cause of this type of fraud, the duty differential, the government has been looking into the costly imposition of duty stamps on bottles.

“The duty escalator has exacerbated another unfairness for medium sized brewers. The duty subsidy to microbrewers now rises to about £200k per annum per small brewer, hugely in excess of what is available in most other European countries or to other small firms in the UK.”

Related topics: Beer

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