CAMRA: end special treatment for spirits

Special treatment for duty on spirits should end in order to fund a reduction in beer duty, the Campaign for Real Ale (CAMRA) has told the Chancellor.

CAMRA also called for a zero rate of duty to be introduced on beers with a 2.8% or below abv.

Following last year's Pre-Budget Report, excise duty on beer, wine and cider was increased by 8% whilst spirits were let off lightly with a rise of only 4%.

 "UK beer duty has been increased by 52% since the current Government came to power in 1997 whilst spirit duty has increased by only 19%," said CAMRA chief executive Mike Benner.

"The 4% duty concession given to the spirits lobby following last year's Pre-Budget Report should be withdrawn to fund a fair deal for beer and pubs.

"In the longer term, the difference in the duty rate for spirits and lower alcohol categories should be restored to the levels that Labour inherited when they came to power in 1997."

He added: "The money generated from reversing the special treatment of spirits should be used to scrap duty on low strength beers and to reduce the main rate of excise duty on beer.

"Unlike spirits, beer is the mainstay product of community pubs which simply cannot afford further price increases.

"Community pubs provide a safe and social environment for people to relax with a drink and play a major role in community life. Community pubs should not be made to suffer as a result of unfair rises in beer duty, while spirits get off lightly."

Benner also urged pubcos to pass on any duty cuts to tenants. "Any reductions in beer duty must be fully passed on by pub owning companies to their tied publicans and therefore the consumer.

"Government should make it clear that it will stamp down hard on profiteering, through new competition legislation if necessary."