Industry braces itself for Budget

The drinks industry is stepping up its campaign to persuade the government to put a freeze on alcohol duty rises ahead of the Budget (April 22).

A ComRes poll commissioned by the Axe the Tax campaign has offered some hope to those involved in the trade when it revealed that 59% of MPs oppose Chancellor Alistair Darling's controversial 2% above inflation duty escalator. Some 61% of MPs also want more government action to support local pubs.

A total of 202 MPs, including 97 Labour backbenchers, have signed a Parliamentary motion calling for a freeze on duty.

Gavin Partington, head of communications with the Wine and Spirit Trade Association (WSTA), said that job losses in recent months should spur the government to alter its approach. "If ever there was a time when a duty rise was inappropriate, it is now."

David Williamson of the Scotch Whisky Association (SWA) warns: "Last year's duty rises were the biggest on Scotch Whisky since the early 1970s. With the economy changing dramatically over the last year, our focus is on preventing a further damaging duty rise in April. Working with other drinks sectors, a strong case has been made across Government that the above inflation duty escalator should be removed and duties frozen."

Meanwhile, the Prime Minister's Office has responded to a Harpers online poll that urged Gordon Brown not to introduce legislation that punishes people who drink responsibly.
The poll was signed by over 450 people, including members of the public as well as the trade, before it was taken down at the end of January.

The government response states that it does not intend to introduce draconian measures, but has a responsibility to deal with the issue of irresponsible drinking.

The Republic of Ireland has not raised taxes on alcohol in an emergency Budget announced last week, amid fears a tax hike would lose the government revenue.

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