BBPA chiefs to meet Diageo over tax plan controversy

By James Wilmore

- Last updated on GMT

British Beer & Pub Association (BBPA) chiefs have called a meeting with the UK managing director of Diageo - a BBPA member - next week to discuss...

British Beer & Pub Association (BBPA) chiefs have called a meeting with the UK managing director of Diageo - a BBPA member - next week to discuss the drinks firm's controversial stance over alcohol duty.

Brigid Simmonds, the BBPA's chief executive and Ralph Findlay, the group's chairman, will meet Diageo's Simon Litherland on Monday to talk about the company's proposal for alcohol tax.

Diageo, the world's biggest spirits maker, has provoked fury in the pub trade after it urged the government to level out, or equalise, tax on all drinks. This would in effect mean freezing duty on spirits, while beer tax would continue to rise to bring it in line.

Simmonds told The Publican​: "I have a number of members who have real concerns about their [Diageo's] stance, which is not in line with what we are trying to do with beer.

"We are going to have a discussion about their position [on duty] and how it fits with the BBPA. I have no idea what they will say."

The government is currently reviewing the alcohol duty system and is due to set out its plans later this autumn.

Jonathan Neame, chief executive of Shepherd Neame and the BBPA's vice chairman, refused to be drawn on whether Diageo would be asked to leave the group.

But he admitted it would be "good to understand exactly what Diageo's policy is".

He added: "What is clear is beer tax is too high, which disadvantages the pub. Beer has been unfairly treated for the last 15 years."

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