Another nail in the coffin of the traditional British pub

By James Wilmore

- Last updated on GMT

The Society of Independent Brewers (SIBA) has said Alistair Darling's first Budget is "yet another nail in the coffin of the traditional British...

The Society of Independent Brewers ​(SIBA) has said Alistair Darling's first Budget is "yet another nail in the coffin of the traditional British pub".

Responding to across the board rises in alcohol tax, including 4p on a pint of beer and 3p a litre on cider, a SIBA spokesman said: "By imposing such a large increase on the already unfair and punitive levels of tax on beer, the Chancellor is driving more and more people out of the controlled environment of pubs and into off-licences and supermarkets, where they can buy cheap alcohol, often at less than cost price.

"We have launched a campaign calling on the government to adopt policies to support pubs, practically the only place where you can buy local quality beers, which play little or no part in the current wave of disorder on Britain's streets.

"But the government is clearly not in the mood to listen.

"It is also baffling that cider continues to receive preferential treatment, with less than half the increase in duty compared to beer."

Meanwhile, the Wine & Spirit Trade Association​ (WSTA) said consumers are set to suffer after Darling increased tax on wine by 14p a bottle and 55p on a bottle of spirits.

WSTA chief executive Jeremy Beadles said: "It is no cause for celebration that British consumers will now pay more tax on wine than anyone else in the European Union.

"It is bizarre at a time when the economy is slowing, prices are rising and many families are feeling the pinch that the government should choose to add to their burden by making the simple pleasure of a glass of wine or spirits considerably more expensive.

"We are surprised that a government which came to power promising to govern in the interests of the many now wishes to punish them. Our polling shows voters don't support this."

"Wine and spirit drinkers already face the prospect of price rises as a result of the increasing cost of raw materials - grapes, grain, packaging, glass, freight and energy. This tax hike will simply make things worse for the average consumer."

"That the government should commit itself and future governments to an above inflation rate increase for alcohol for the next four years is hitting all drinkers for the sins of a minority even before it has received the results of its own report on Pricing, Promotions and Harm.

"A policy of commit now, hurt consumers now, study the issue later."

The Gin & Vodka Association ​said increasing tax will not target the abuser. Edwin Atkinson, Director General said: "The Chancellor cannot have it both ways.

"Either he wants more revenue or he wants to reduce consumption. For spirits, he cannot have both.

"And given the huge increases in production costs, this increase is even more concerning."

It estimated that We the increase in tax rate will reduce revenues by over £40m a year, not increase them.

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