Beer Tax

Whilst we all detest the increase in beer tax perhaps we should look at the real problem and provide a realistic solution. When the VAT changed 17% to 15% and duty went up we all complained but the good thing about this change is that it actually made expensive real ale cheaper in the pub when compared to the change on cheap lager in a super market, work the figures out. If you take this to extremes why not zero rate the VAT on Beer and Cider and adjust up the duty. The duty is fixed to the volume and strength of a pint, Vat is related to the selling price at the outlet.

This is a win win situation. The government could have a neutral change in tax revenue (if they could get the sums right). The Pubs the quality brewers and Pub drinkers would benefit from the price reduction. the losers would be a significant increase in very cheap discounted beer, and very strong cheap booze would suffer worst. Do the sums its make sense.

Related Articles

The following article featured on the ICM website on the 27 January 

http://news.icm.ac.uk/business/retail/beer-sales-down-almost-10-amidst-“tax-burden�/829/

Beer sales down almost 10% amidst “tax burdenâ

Tuesday, 27 January 2009

Overall beer sales in the UK slumped by 8.3% in the fourth quarter of 2008, according to the latest statistics from the British Beer & Pub Association (BBPA).

Publishers of the UK Quarterly Beer Barometer, the comprehensive guide to beer trends in Britain, BBPA found the drop to be the highest fourth quarter fall since records began in 1997.

It showed that 2.2 million fewer pints were drunk every day in the final quarter of 2008, than in the same quarter of 2007. Compared with the fourth quarter ten years ago, 404 million fewer pints were sold across the country in the final quarter of 2008 a decline of 4.4 million pints a day.

Beer sales in pubs, bars and restaurants were down 9.9% on the same quarter in 2007 equating to 1.4 million fewer pints every day.

Sales were also down in supermarkets and off licenses  falling by 6.5% for the second consecutive quarterly fall in the off-trade.

In total, beer sales for the whole of 2008 fell by 5.5%, compared with 2007. On-trade sales were down by 9.3% and off-trade sales fell by 0.2%.

The BBPA also stressed that: The declines have hit the Government's revenues at the worst possible time for the public purse it is estimated that tax income from duty and VAT are down £181 million since the March Budget, compared with the same period in 2007. This despite the fact that beer taxes rocketed by an eye-watering 18% last year.

Rob Hayward, Chief Executive of the BBPA, said: British pub-goers have been hit hard by the Budget and the Pre-Budget Report. In addition to further tax increases, the Government says it wants pubs to pay an extra £300 million this year alone as the cost of introducing a mandatory code of practice. The industry's Axe the Beer Tax Save the Pub campaign has seen a surge of public support for our beleaguered sector. It's time for the Government to respond to these calls and support a great British industry.

The BBPA is the UKs leading organisation representing the brewing and pub sector. Its members account for 98% of the beer brewed in the UK and own nearly two thirds of Britain's 56,000 pubs.

Further information on the Axe the Beer Tax : Save the Pub campaign can be found at: www.axethebeertax.com

By Heidi Lees-Bell

The following letter was sent from the SIBA President sent 30 January 2008...

Sign up -  www.axethebeertax.com     Support materials - www.axethebeertax.com/downloads.aspx

To All SIBA Members

Wednesday, 21 January 2009

Dear Member

Thousands sign up to Campaign to Axe the Beer Tax and Save the Pub

As you will be aware, towards the end of last year the BBPA launched a campaign to Save the

Great British Pub. SIBA have given their wholehearted support to this campaign a we wanted to

let you know of the extraordinary response it has produced so far and suggest ways in which you

can help us keep the momentum going into the New Year.

In just seven weeks over 16,000 people have signed up as supporters, including landlords,

customers and those concerned about the impact pub closures are having on communities up

and down the country. Via our website over 9,800 of people have lobbied their MP on the issues

and as a result 88 Members of Parliament (of all parties) have signed an Early Day Motion in

support of the campaign. In addition the campaign also has the support of well-known figures

including Ricky Hatton, Neil Morrissey, Jennifer Ellison and Kym Marsh.

In recent days we have received: a letter from Justine Greening MP, who is in the Conservatives Treasury team, saying

they are now in the process of re-evaluating their policy options for the Budget.

A public statement of support for the campaign from Nick Clegg, leader of the Liberal Democrats.

Notification by Unite, Britain's largest trade union, that they have decided to fully support

the campaign. 

In 2009 we will be continuing to roll out the campaign with activity around the budget in March to

highlight the industry's plight and take the argument to the very heart of government. We will

keep you regularly informed of these as we roll them out. I have attached the campaign plan to

which we are working, which identifies the nature and timings of the key actions we are

undertaking during this period.

How can you help us keep the momentum going?

Firstly, please encourage each and every one of your staff, employees and customers to sign up

to the campaign on line at www.axethebeertax.com, and lobby their MP using the easy to use

instructions on the site.

Secondly many pubs and companies across the country have been mobilising support at a local

level via writing to the press and MPs and organising events which highlight the campaign. I have

attached a few examples of these to this letter to illustrate some of the ideas you may wish to

take up in your own area.

I have also attached some example materials which we would like each member to issue locally,

you can find these in easily adaptable form at www.axethebeertax.com/downloads.aspx This

includes a draft press release to local papers, letters to MPs and an email to friends and

colleagues requesting their support.

If you would like any more information or help on this then please do contact myself or one of the
team at any point.

Yours sincerely
Keith Bott