100,000 Britons back a call for freeze on beer tax
Beer drinkers, incensed at excessive tax hikes on the nation’s favourite pub drink, are now set to force a debate in Parliament. By 20 September 2012 over 100,000 people had signed an online petition on the issue, launched by the British Beer and Pub Association (BBPA). Campaigners say it’s a wake-up call for the Government and its damaging tax policy on Britain’s beer and pubs.
The BBPA says that the beer duty has risen by 42 percent since March 2008, when the controversial beer duty escalator was introduced – and 6,000 pubs have closed. A typical British pub in now burdened with GBP 66,500 (EUR 82,000) of duty and VAT on beer every year, which represent a huge drag on pub businesses.
Research by Oxford Economics for the BBPA shows the policy is costing 5,000 jobs this year alone. With no significant rise in tax revenues, the policy also makes no economic sense, says the BBPA. "The paltry, GBP 35 million (EUR 43 million) extra duty, collected by the Treasury this year, is wiped out by the loss of revenue through job losses, lost VAT and other taxes and the added cost to Britain’s hard-pressed beer drinkers, pubs and brewers," the BBPA added.
BBPA Chief Executive Brigid Simmonds commented: “Thanks to the huge numbers who are supporting the campaign, this should be a real wake-up call for the Government. I hope even more people will now sign, as further huge annual tax hikes must not go ahead. They are hurting pubs and destroying our ability to create much needed jobs.”
At the moment, the BBPA cannot say when there will be a debate on beer tax in Parliament. They would like it to be as soon as possible, but it’s a decision for the backbench business committee at the House of Commons.
