Rise in alcohol tax confirmed

12th March 2008, 4:47pm

Chancellor Alistair Darling has announced in today’s Budget that alcohol tax is to rise by 6% - with a 2% annual increase for the next four years.

4p has been put on a pint of beer, 3p on cider, 14p on wine, and a massive 55p on spirits.

Commenting on today's increases, Rob Hayward from British Beer & Pub Association, said: "By aiming a tax hike at beer, the Chancellor is shooting himself in the foot. Treasury revenues will continue to fall, pubs will continue to close and beer sales sink further."

He continued: "Every single day, the Treasury is losing over £1 million in beer taxes and four pubs are closing. People are now drinking 1 million fewer pints a day compared with last year. That trend will continue. It's a decision doomed to failure – bad for taxpayers, beer, pubs and bad for the Treasury as well."

Mike Benner, Chief Executive of The Campaign for Real Ale (CAMRA) also strongly disagrees with the decision: "The Chancellor has failed to recognise that well-run community pubs are the solution to Britain's binge drinking problems. This budget will do nothing to stop binge drinking, but it will lead to pub closures on a huge scale, widen the gap between supermarket and pub prices and encourage smuggling and cross-border shopping. It's a great big nail whacked ruthlessly into the coffin of the British pub."

Other changes in today's Budget includes an increase in green tax on flights, more cash provided to tackle child poverty, and more help with rising energy costs for poorer families.

Click here to submit a comment!

Have your say!

To comment on this article, simply enter your name and email and send us your views. Please note that your comment will appear publicly below this article once it has been processed. For enquiries please email info@costsectorcatering.co.uk.