Darling urged to ditch beer tax rise
Saturday 21st February 2009, 11:00AM GMT.
The Kynnersley Arms, Leighton. One of the growing number of Shropshire pubs to have closed. For more on this pub’s story, click here.
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. On average six pubs are closing every day in the UK.
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.”
By London Editor John Hipwood
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this would make some lovely and much needed flats? beer is bad for health, tax it to the hilt i say, silly tories
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hardly a priority is it?
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It would seem common sense escaped Harlescott Salopian…think of the domino effect this is having, (Credit Crunch anyone?)
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who cares
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sad to see that pub close, it was nice, but not really down to beer tax is it, its the supermarkets what are really killing our villages
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I agree why should pubs be saved? They are a relic of our past which do not deserve saving, people no longer feel the need to go to smokey pub and get intoxicated to have a good time.
Let the pub industry die in the same way that working men clubs, smoking rooms etc have been dispatched to our history.
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Y Mab Darogan obviously hasn’t been to a pub in a while if s/he still believes they are ‘smokey’. Why should an industry that is one of the longest surviving, inherently British and a huge employer in the UK not have huge tax placed on it. Why not, for example, set it off by taxing the hell out of bankers obscene bonuses? Good pubs do a lot for their communities.
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It took me some time to recognise this beautiful pub building in what was a beautiful village (maybe it still is – I emmigrated two years ago for a better standard of living, perhaps its best to blame people like me?) It’s such a shame, although business is business and I don’t think the tax payer should subsidise anymore businesses – the best way for us to subsidise businesses is by aspending our income there at our own discretion -and if we don’t the business fails if it can’t keep up with the economy or culture of the times.
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this is an important issue and alastair darling ignores the booze vote at his peril. he should reduce alcohol tax by 5p a pint and claw back the lost revenue from smokers and a new caravan tax of say £200. now we are motoring
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Agree with Devon, definitely a tax on caravans (seriously) and additional tax on smoking. Only beer purchased from supermarkets should be more heavily taxed as it is this which is being sold a ridiculous prices and made available to the younger generation to drink on our streets. I don’t see issues from youths drinking in licensed premises but they are certainly getting sufficient cheap alcohol!
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not a priority i think more tax on alchohol is a good thing to discourage consumption for health and economic (workers getting out of bed in the morning) reasons, so yes in light of the credit crunch tax it more
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spot on idontbelieveit, the caravan tax is long overdue
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The Kynnersley Arms ( known as the “kyn”)
Our band played in this pub several times cc 2003-6, whilst the original tenants, Jane and Pierre ran it. We always enjoyed going to the kyn – and it’s a damn shame it’s like it is now.
As I remember Jane and Pierre did a hell of a lot for the community, having several “open days” at the pub, where we set up an outside Stage and PA in the rear car park for various musicians (including ourselves) to play during the day.
I believe Jane and Pierre also were responsible for getting the “time team” involved to expose the original water wheel workings, which were viewable through a glass panel in the rear bar area.
A great Shame.
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darling hasnt a clue, ditch him now, we will cut taxes on alchohol and get the economy going again through massive tax breaks
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Agree, agree, agree, tax Caravans until they jacknife. A long overdue policy which should be done soonest. They have got away with it for far to long. This Government has much to answer for with the demise of the pub but it’s not only them neither, the greedy, tight fisted brewers and landlords are as much to blame. Tenants have been priced out of the job with eye watering rent increases that makes the ordinary pub a totally uneconomic proposition.
I agree, tax booze from Supermarkets etc etc to the limit and a corresponding decrease in tax on booze in pubs.
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Want to save the pubs ? Then rescind the Smoking Ban ! This has been responsible for closing pubs ALL over the UK, as smokers now drink at home, where they are allowed to. There should have been smoking and non smoking pubs. Plus, the argument to all ills seems to be tax it so people can no longer afford to buy whatever it is.
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