What future for traditional British pubs?

DARLING CALLED ON TO DROP PLANS FOR BEER TAX RISE

Tories today called on Chancellor Alistair Darling to drop plans for 
further increases in taxes on beer in his April Budget because of
the threat to the future of the traditional British pub.

Shadow ministers described the pub as a “vital British institution”, and
claimed thousands faced closure because of steep tax increases planned by
the Government. Pub beer sales were also down 10 per cent in the quarterly
beer barometer published last month.

The British Beer & Pub Association said tax revenues from beer were already
down £181 million since last year’s Budget, and forecast further falls in
the Chancellor’s income because of the beer duty escalator introduced by Mr
Darling.

Association chief executive Rob Hayward said: “These figures highlight the
extreme economic pressures hitting Britain’s beer and pub sector. Beer sales
are sinking and many pubs are struggling to survive. Pub closures have
escalated to nearly six a day. 

“Unfortunately, Government tax policy is only making a difficult situation
worse. Due to the Government’s tax escalator and VAT policy, we are facing
two further tax increases this year alone. By the 2012 Budget, the tax on
your pint of beer will have increased by up to 40 per cent from February
2008.

“We are not asking for a tax handout, like other sectors. We just don’t want
our tax burden to be made worse. When it comes to stimulating the UK
economy, the Government should not and must not turn a blind eye to
Britain’s beer and pub sector,” said Mr Hayward.

Shadow culture secretary Jeremy Hunt said: “We all have our favourite local
pub but up and down the country people have been losing theirs. Not only are
they a critical part of our heritage but they are often hubs for local
communities helping social groups, sports clubs and often even the village
shop. 

“For too long the Government has tried to tackle binge drinking by punishing
responsible drinkers and landlords. With massive tax hikes and heavy handed
regulation all Labour will succeed in doing is closing down more pubs. This
has to stop.” 

Shadow business minister Mark Prisk added: “Pubs are often small family-run
businesses. Not only are they the social heart of their communities, they
also provide jobs.” From the Shropshire Star