Forthcoming Budget "crucial to industry's fortunes

Measures announced at the next Budget could prove to be vital to the fortunes of the UK pub and brewing sectors, according to Jonathan Neame, chief executive of Kent brewer Shepherd Neame.

While the date of Alistair Darling's first Budget as Chancellor of the Exchequer has yet to be announced, the brewing industry is at the very least setting its sights on a freeze in beer duty to help it through the current trading turmoil and plan for the future.

However, Neame fears that despite working closely with government over recent and not unproblematic legislation, brewers will be left with nothing.

"This Budget is absolutely crucial. If we get what we got in last year's announcement [a 1p rise in the price of a pint] then we'll have failed," he warned.

The industry "needed to get its lobbying efforts right", Neame said. "We must be more robust. We've been co-operative over the Licensing Act and the smoking ban and government needs to engage seriously with us with regards to the future," he added.

Communication with government was not helped by the fact that there was no-one in the Cabinet with responsibility for alcohol strategy, Neame said.

Brewers fear the government will be tempted to raise beer duty in order to be seen as tackling concerns over binge drinking behaviour.

However in a submission to members of the All Party Parliamentary Beer Group last November Neame said further hikes in duty would only serve to damage the industry that generated much-needed revenue in the first place.

Companies also want a review of the impact of excise policy on the UK brewing industry.

According to the British Beer & Pub Association, beer duty has risen by 23 per cent since there was last an increase levied on spirits, back in 1998.