Darling urged to ditch beer tax rise

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