Hospitality and off-licence sectors throw weight behind Drop the Duty campaign

By Arabella Mileham

Published: 24 February, 2015

The hospitality and multiple off-licence sectors are throwing their support behind the trade's Drop The Duty campaign, as new research from CGA highlights the importance of wine and spirit sales to the UK on-trade.

The British Institute of Innkeeping (BII) and the Association of Licensed Multiple Retailers (ALMR) are the latest organisations to support the campaign set up by the Wine & Spirit Trade Association and Scotch Whisky Association to lobby the Chancellor for 2% cut in alcohol duty. Together they represent around 25,000 pubs, bars, clubs and casual dining premises.

New research from on-trade research body, the CGA, shows wine and spirits are increasingly important to on-trade sales and now account for 42% (£9.6billion) of the value of total alcohol sales. It found that wine and spirits make up nearly half of all alcohol sales (49%) in new premises, compared to only 35% of pub closures.

Tim Hulme, chief executive of BII, said the hospitality industry had been under significant pressure in recent years with strong, competition, high tax rates and increased business costs and the government needed to take support for the sector seriously.

"What is clear is that those pubs and restaurants which invest in developing their wine and spirits offering are the establishments which are thriving," he said. "However, current levels of tax mean that many companies can't afford to invest in doing this.

ALMR chief executive Kate Nicholls said pubs, clubs and bars had adapted and boosted their offering of wine and spirit sales along with casual dining, but that "sky-high levels of taxation" on eating and drinking were holding the sector back. "We are asking the government to recognise the importance of the wine and spirits trade to the long term success and sustainability of investment across the sector and in our high streets and local communities," she said.

WSTA chief executive Miles Beale said the combined endorsements of the BII and ALMR added real weight to the campaign.

"The new CGA data makes very clear the accelerating trend toward wines and spirits in new pub and restaurant openings. Those establishments selling more wines and spirits are responding to changing consumer demand, leaving others behind," he said.

He said it made business sense for the hospitality sector, which relies on attracting customers into new pubs and other on-trade venues, to support a fairer tax regime to allow these venue to thrive.

* You can still play your part and lobby your MP to call on the Chancellor for a duty cut by going to the Drop the Duty website and sending the templated letter to your local MP.

* You can also get your local MP and regional media on your side by taking part in the Harpers Action Week activity to support the Drop the Duty campaign.

Go to the Action Week 1 area of the March for the Independents section of Campaigns and there you can download templated letters to your MP and a Letter to the Editor of your local media explaining the reasons why a duty cut is not only important for your business but fair to consumers across the country.

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