Licensees blast duty hike

Licensees have slammed Chancellor Alistair Darling's decision to press ahead with a two per cent tax hike in alcohol tax in today's Budget.

At a debate organised by the BII, licensees said they felt betrayed by the government's failure to listen to the industry's calls for a freeze on alcohol duty.

Conrad Sturt from the Half Moon in Windlesham, Surrey, accused the Chancellor of arrogance.

"This has not helped the trade at all. While there is a two per cent increase in duty tax, by the time all the other price increases come through we could be looking at an increase of 20p in the price of a pint."

Gary Duff Godfrey, licensee of the Thornbury Castle in London said: "I am very disappointed. I was expecting to see some help for the licensed trade.

"But it is yet another Budget that has given pubs a hammering. It means that over the coming year trading will be very hard and we will see a further rise in the closure of pubs."

While Bill Sharp from the Kings Head in London said that tied pubs would suffer as a result of the hike in fuel duty when it came to delivery of supplies as well as from the rise in alcohol tax.

He added these extra costs would force licensees to charge customers more in order to compensate.

"As the recession continues, these price increase are going to be more noticeable and we will lose customers."