Former pubs minister John Healey urges chancellor to back British beer

23 March 2012
Former pubs minister John Healey urges chancellor to back British beer

Former pubs minister John Healey has urged the chancellor to "back British beer".

Healey has written to George Osborne, telling him: "Having been minister for HM Customs & Excise and responsible for excise duties for the five years I spent in the Treasury, I am concerned that we are now overlooking and undervaluing a great British asset.

"You have announced your decision to stick with the alcohol duty escalator of RPI +2%. Looking at the data, there is now an increasing risk of diminishing returns and increasing smuggling and fraud. In recent years a 52% rise in beer duty has produced a 10% increase in duty revenue and almost a 25% fall in sales.

"Unlike wine, which is 99% imported and largely drunk at home, 85% of the beer drunk in Britain is made in Britain; and it is often consumed in pubs. Industry figures show the economic value of this to the UK, with one million jobs linked directly to brewing and pubs.

"Beer is a great example of British enterprise with more than 800 breweries countrywide, many of which are small, independent growing companies like the Wentworth brewery in my own constituency."

Mike Benner, Camra's chief executive, said: "It is a sign of the chancellor's careless approach to beer and pubs that he neglected to mention in his Budget speech that he was increasing beer duty by an inflation busting 5%.

"This hidden increase will cause the loss of many valued pubs, cost jobs and hit ordinary pub-goers in the pocket. The taxman is now swallowing a third of every pub pint in tax.

"Enough is enough, which is why Camra, like John Healey MP, is determined to secure a fairer tax deal for beer, which is crucial to the future of the nation's pubs.

"Camra is urging all those who care about beer and pubs to sign an e-petition calling for an end to above-inflation increases in beer duty at www.camra.org.uk/saveyourpint."

Cambridge restaurant to offer duty-free beer and VAT-free chips to highlight high taxes >>

Pubs and brewers react angrily to the Budge >>

BBPA delivers British beers to Treasury, as 97 MPs sign motion supporting suspension of beer duty escalator

By Neil Gerrard

E-mail your comments to Neil Gerrard here.

Tabletalk
Tabletalk
If you have something to say on this story or anything else join the debate at Table Talk - Caterer's new networking forum. Go to www.catererandhotelkeeper.com/tabletalk

Catererandhotelkeeper.com jobs

Looking for a new job? Find your next job here with Catererandhotelkeeper.com jobs

Blogs on Catererandhotelkeeper.com ](http://www.catererandhotelkeeper.com/blogs) Catch up with more news and gossip on all Caterer's blogs
[E-newsletters](http://www.catererandhotelkeeper.com/email-newsletters.htm)[ For the latest hospitality news, sign up for our E-newsletters
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking