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.”

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The Government has announced that an “Emergency Budget” will take place on 22nd June.

The signs are that George Osborne plans to increase beer tax and could well also increase VAT to 20 per cent.

It is vital we do all we can to prevent this tax hike threat from happening.

The new Parliament, with 226 new MPs and Labour now in opposition, provides fresh opportunities for us to get our message across. 140 of the new intake backed our campaign as candidates. We need to ensure that they honour their commitment now they are MPs.

· Click here to lobby you MP http://www.backthepub.com

· Enter your postcode in the “Petition Your MP” box and click “GO”

· This generates an automatic lobbying e-mail to your MP

· Enter your details above and below the email box then click “send message”

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Three industry groups are sending a joint letter to Chancellor George Osborne urging him to consider a “compensatory” cut in beer duty if VAT is increased in the emergency Budget.

For the full article go to:  The Publican

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Tory MP John Penrose has been confirmed as the new minster responsible for licensing.

Despite widespread speculation the brief would go to the Home Office, the DCMS confirmed that its minister John Penrose will be responsible for licensing. Tourism also falls under Penrose’s brief.

Penrose, Conservative MP for Weston-Super-Mare, also holds the post as under-secretary of state at the Department for Business, Innovation and Skills.

The MP’s professional career included stints as a banker at JP Morgan, management consultant, and book publishing. He is also a Cambridge law graduate. Other ministers at the DCMS are Hugh Robertson as minister for sport and the Olympics and Ed Vaizey takes up the role of minster for culture. Jeremy Hunt is Culture Secretary and is in charge of the overall department.

Taken from:  The Publican

By James Wilmore

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The coalition government has committed to banning alcohol sales below cost, reviewing the alcohol tax system and overhauling the Licensing Act, in a wide-ranging policy document released today.

To view the full article go to:  The Publican

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For many, I suspect, opposing the UK’s inordinately high tax on beer is part of a more general opposition to taxation as such.

For me, the problem is that duty and VAT are forms of regressive taxation. They do the opposite of what tax is supposed to do — redistribute wealth from the well-off to the less well-off. Someone on £20,000 a year drinking 20 pints a week in their local is going to feel a tax increase much more sharply than someone on £100,000. It’s taking a much higher proportion of their income. And as Pete Brown graphically showed this week, there is also a widening gap between the burden of duty on beer and that for wine and spirits.

To see the full article go to:  Morning Advertiser

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The Campaign for Real Ale (CAMRA) has written to the Prime Minster calling for a new pubs minister — and has suggested either Nigel Evans or Greg Mulholland for the role.

To view the full article go to: Morning Advertiser

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In this week’s Scrubbing Up, Dr Catriona Morton says drastic measures are needed to save Scottish drinkers from themselves.

In order to curb dangerous drinking, supermarkets must be prevented from selling cheap alcohol and awarding loyalty points with purchases, she says.

To view the full article go to:  BBC News

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It is probably fair to say alcohol policy was not likely to have been a key topic in the formative discussions of the new Con-Lib Dem coalition Government. Nonetheless, we know some common ground and a few differences between the their pre-election alcohol proposals.

To view the full article go to: alcoholpolicy.net

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