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Campaigners attack beer tax rise

23/03/2011 18:23

The price of a pint of beer is set to rise by up to 10p, more pubs will close and thousands of jobs will be lost after the Government pressed ahead with planned alcohol tax rises, campaigners have warned.

The Campaign for Real Ale (Camra) attacked the Chancellor's decision to impose a "damaging" 7.2% increase in beer duty, saying that the average duty and VAT on a pub pint will now exceed £1.

Camra said it feared the price of a pint of beer will rise by 10p from next Monday, driving even more customers away and leading to the closure of more pubs, currently running at 25 a week.

Beer tax has now increased by over a third since 2008, taking the average price of a pint of real ale to £2.84, and £3.02 for a pint of lager, figures which will now increase in the wake of Wednesday's announcements.

Mike Benner, Camra's chief executive, said: "It is incredible to consider that Britain's beer drinkers are forced to endure the second highest rate of beer tax in Europe, particularly when the Prime Minister promised a pub-friendly Government with the pub at the heart of the Big Society.

"By penalising the vast majority of responsible pub-goers, the Government is not getting to the root of the problem, which remains cheap alcohol sold in an irresponsible manner in the off-trade."

The British Beer and Pub Association, which represents most of the country's 52,500 pubs, said sticking to the previous government's beer tax escalator was a "hammer blow" to pubs and drinkers.

Chief executive Brigid Simmonds said: "This will not raise any more money for the Treasury, cost 10,000 jobs this year alone and see many more pubs close. This policy hampers growth and damages pubs and the communities which rely on them.

"Increasing the tax on beer in line with other types of drinks is also a missed opportunity to recognise beer's wider economic contribution. Beer has a special place in keeping Britain's pubs thriving, and is also the nations' favourite, lower-strength drink.

"However the Government does deserve credit for the 50% reduced rate for beers below 2.8% abv. It will act as a spur to innovation in what is a vital UK industry, and over time, should help nudge consumers towards lower-strength drinks.

"The next step is to move towards a zero rate and, as importantly, for the Government to support a change in European law to increase the 2.8% abv threshold to which reduced rates can be applied."

© 2012 The Press Association Limited

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