he Campaign for Real Ale (CAMRA) hopes to work with the Government to secure a change in EU rules to allow a lower duty rate on beers below 3.5% abv.

The Government is committed to reducing duty on beers below 2.8% abv in the March Budget but EU rules currently restrict that rate being extended.

CAMRA has welcomed the move but “would like the 2.8% threshold increased to around 3.5% abv and hopes that the UK Government will work with CAMRA and the wider industry to secure a change in EU rules to make this possible”.

However, CAMRA voiced its opposition to plans to increase duty on beers above 7.5%. The Government’s aim is to increase the price of super strength lagers, such as Carlsberg Special Brew, but CAMRA said it would also hit craft beers not associated with binge drinking.

“This could discourage production of higher strength Belgian style beers and vintage British ale styles,” it said in its Budget submission to the Treasury.

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Drinks discount cards in Scotland are legal, a judge has ruled in a test case on irresponsible promotions in Scotland

Dundee’s Sheriff Court ruled in favour of Mitchells & Butlers (M&B) “Yellow Card” student discount card used at its Scream pub the Nether Inn in Dundee.

M&B, which has since sold the pub to Stonegate, appealed against a warning issued by licensing chiefs that the discount card breached new licensing laws on irresponsible promotions.

It is believed to be the first appeal of the new rules on drinks promotions that came into force with the Licensing Act’s introduction in September 2009

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Cheap supermarket deals on alcohol are short-termist and damaging to alcohol brand building, while helping to reduce the value of Christmas to the alcohol industry.

That’s the view of research company Mintel as a new study showed that spending on alcohol in the fourth quarter declined from £11.5bn in 2009 to £10.4bn in 2009, costing the industry over a billion pounds in lost revenue. It forecasts a bigger drop this year

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The Campaign for Real Ale (Camra) has attacked the Government for failing to include a commitment to a ban on the sale of alcohol below cost price as part of the upcoming Police Reform and Social Responsibility.

Both the Conservative and Liberal Democrat parties that make up the Coalition Government made the ban a pledge in their election manifestoes, but ministers announced today that it would not be included in the bill.

Camra said a delay on the introduction of a ban, combined with other proposals released today as part of the bill – such as a levy on late-night licensing – meant that the on-trade would be hit hardest.

Mike Benner, Camra chief executive, said: “This delay will only add to pubs’ woes at a time when so many are struggling to survive. Pubs are already set to be hit hard by a VAT increase to 20% in the New Year which they simply cannot afford to absorb so will have to pass on to customers. This means that the differential in prices between pubs and supermarkets will continue to widen.

“This Christmas, you only need to look at the incredibly low alcohol prices in supermarkets to see just how desperately we need to curb their irresponsible behaviour. Beer in supermarkets can be as much as six times cheaper than beer sold in pubs, which is driving people away from the responsible, regulated environment of well-run pubs and leading many to drink at home.”

Taken from:  caterersearch.com

Taken from:  Scotsman

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.”