Speciality beers face hit from high-strength tax hike, warns CAMRA

Hiking duty on high-strength beers will make a "limited contribution" to Treasury coffers and threaten the production of speciality beers, CAMRA has warned the government.

In its Budget submission to the Treasury, the group has pointed out that beers above 7.5 per cent represent just 0.4 per cent of the UK's alcohol market.

Following a review of alcohol taxes, the coalition unveiled plans in November to raise tax on high-strength beers, to cut consumption of "super-strength" lagers.

But in a briefing paper, CAMRA said the move would "discourage production of higher strength Belgian beers and vintage British ales".

Last year the Treasury also announced that beers below 2.8 per cent ABV will face a lower rate of duty.

Both measures are expected to be confirmed in next month's Budget.

CAMRA welcomed the tax cut on low-strength beers, but says it wants the threshold raised to "around" 3.5 per cent ABV. This will mean a change in EU rules, but the group says it hopes the government will work with it to secure this change.

Meanwhile, CAMRA has also attacked groups calling for alcohol taxes to be equalised. "Brewing beer is substantially more expensive than distilling white spirits" and "beer, unlike spirits, is essential to the survival of pubs," the group said.

It has also criticised the idea that increasing beer duty would "benefit the nation's health". "An alcohol tax policy that is pro public health would encourage the consumption of lower strength products such as beer", it added.

CAMRA has also echoed the British Beer & Pub Association's call for the duty escalator to be scrapped and a freeze in beer duty, in the Budget.