Trade bodies have their say on 2010 Budget

Published: 24 March, 2010

The drinks trade associations have been quick to denounce today's Budget announcement of a 5.1% increase in duty on alcohol and 10% on cider.

Jeremy Beadles, chief executive of the Wine & Spirit Trade Association, said: "Successive punitive tax rises on alcohol are taking their toll on household budgets and mean further job losses in the drinks industry are on the cards this year.

"The last year alone has seen business closures and 30,000 job losses and today's Budget means higher prices for consumers and more misery in a sector that ought to be part of Britain's economic recovery."

Edwin Atkinson, director general of the Gin & Vodka Association, said: "The Chancellor cannot have it both ways. If he wants more revenue, there is no point in raising excise taxes on spirits. Revenue from spirits to the Treasury fell by 49m in 2009.

"With nearly six pubs a day still closing, what community pubs and pub goers needed today was a lifeline, not a death knell," said Mike Benner, CAMRA Chief Executive.

"Today's budget is a charter for the large supermarkets who irresponsibly promote alcohol as a loss leader at the expense of our nation's community pubs, real ale and responsible pub goers.

"Today's duty increase has stamped down on the survival hopes of community pubs across the UK. This is a further tax raid on responsible beer drinkers and community pubs. It is however a tax raid that will yield little extra money for the Government as any extra beer duty will be outweighed by job losses, pub closures and reduced business taxes.'

"Hitting small real cider producers with this hike will cause irreparable damage to one of the nation's most historic craft industries. The government must introduce a relief package to support the UK's small cider producers."

Brigid Simmonds, British Beer & Pub Association chief executive, said: "This latest beer tax hike piles on the misery for Britain's hard-pressed pubs and beer lovers. It is also a snub to voters, who by a majority of two to one wanted the Chancellor to scrap the beer tax escalator.

"Since 2008, beer tax has increased by an eye-watering 26 per cent - a £761 million tax rise - and we have seen the loss of 4,000 pubs and over 40,000 jobs up and down the country. Beer sales are down £650m in the last year alone."

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