Brian Simpson, North West MEP and the European Parliament’s chair of transport and tourism, has joined others in the beer and pub sector calling for a freeze in duty, including trade bodies the British Beer and Pub Association (BBPA), the Campaign for Real Ale (CAMRA) and the Society of Independent Brewers (SIBA).
In his letter to the Chancellor, Simpson wrote: “Current beer tax rises in the UK are totally unsustainable. Comparisons with other EU member states make the point very clear. Britons now pay 40 per cent of the entire EU beer tax bill, but only consume 13 per cent of the beer sold in Europe. Beer taxes in the UK are now an astonishing 11 times higher than in Europe’s largest beer market, Germany.
“This is why the industry cannot afford another +5 per cent duty rise in March, which would bring the accumulated rise in taxes since March 2008 to 42 per cent. A freeze in beer duty in the Budget would save 16,000 jobs nationwide in the next three years alone.
“These figures show how important the brewing and pub sector is in the North West. I hope you will take action to protect these jobs by scrapping the beer duty escalator. This will also help our much-loved pubs, the communities they serve and the important local facilities they provide. The Duty system should be rebalanced to encourage the consumption of low-strength alcohol.
“I am aware that you are very busy in the run up to the Budget, but due to the potentially significant impact these tax changes will have to pubs in my region, (and yours) I would be extremely grateful if you could inform me of how the Treasury plans to deliver on the Prime Minister’s ambition to be a pub-friendly Government."