Trade hammered in Budget, says SIBA
Pubs have been hammered by the government again in the Budget, according to Society of Independent Brewers.
Chairman Keith Bott hit out at the 2.5 per cent increase in VAT, that he said "does nothing to encourage consumers to drink cask beer".
Bott said: "It seems particularly unfair that the government is announcing another hammering for pubs just when they are coming into their own as hubs for communities across the country to gather and celebrate - or commiserate - together over England's progress through the World Cup.
"We urge the Chancellor to give consideration in the next budget to a reduction in beer duty as a way of mitigating the particular damage that the increase in VAT will have on British pubs."
And CAMRA said the VAT increase would cause the pub closure rate to increase.
Chief executive Mike Benner said: "In the New Year, many pub goers will be hit with a VAT increase that will push up the combined taxation on a pint of beer to over a pound! This historically sad moment for the nation's 15 million pub goers is compounded by the knowledge that this increase will cause yet more well-run community pubs to shut their doors unless the Government acts
Meanwhile Nick Bish, of the Association of Licensed Multiple Retailers, described the VAT increase as "swingeing" but added "it is no more than was widely forecast."
He continued: "The focus of our lobbying with government is now to seek relief from regulatory interference and red tape. We can take our share of the general debt reduction burden and we will contribute to employment and to the prosperity of small businesses, but only on the basis that pubs and bars and restaurants are given room to succeed. We are definitely part of the solution."
And Neil Robertson, chief executive of the BII, welcomed the alcohol duty freeze.
He said: "We appreciate that the new coalition government has a difficult job to do to rebalance the books. BII is pleased to see that duty on alcohol is to stay the same, and welcomes the Chancellor's plan to introduce tax breaks designed to help small businesses grow
Meanwhile the Federation of Small Businesses said welcomed "many of the measures" in the Budget but expressed concern that rises in Employer National Insurance Contributions (NICS) were not completely reversed.
