Keith Bott, chairman of the Society of Independent Brewers.

The Society of Independent Brewers (SIBA) has welcomed today’s Emergency Budget decision not to raise beer duty, but has criticised the announced increase in VAT as “more of the same” failure to understand the impact on pubs. SIBA points out that, without a compensatory cut in beer duty, prices will rise higher in pubs than in the off trade, and yet more pubs will close.

Chairman Keith Bott commented, “We became accustomed to the last administration talking up its support for pubs and then imposing fiscal measures that ensured more of them went to the wall. Now it seems the new Government is similarly unable or unwilling to make the connection between increasing beer prices and closing pubs. This increase will cause yet more distress to our beleaguered licensees who, let’s not forget, have already had to deal with one Budget this year.

“SIBA is particularly concerned that today’s VAT increase does nothing to encourage consumers to drink cask beer, rather than stronger alcohols with greater potential to cause harm. Cask beer, with its relatively low ABV, is always consumed in the controlled, socially responsible environment of the pub, making it a much less damaging form of alcohol than cheap supermarket-bought spirits.”

Bott added, “It seems particularly unfair that the Government is announcing another hammering for pubs just when they are coming into their own as hubs for communities across the country to gather and celebrate – or commiserate – together over England’s progress through the World Cup. We urge the Chancellor to give consideration in the next budget to a reduction in beer duty as a way of mitigating the particular damage that the increase in VAT will have on British pubs.

“We sincerely hope that the Government will recognise that beer and the pub industry are as deserving of their support as cider, which they have been so willing to allow to revert to duty rates that are less than half that for beer.”