So, after the time and effort we have all expended trying to persuade the Government to halt the alcohol duty escalator, George Osborne dashed our hopes with a single sentence: “But today I have no further changes to make to the main duty rates set out by my predecessor.”
No exemptions, no finessing, no recognition that the escalator is harming British pubs and no relief from the above-inflation duty hikes that have been pushing up the prices of beer, cider, wine and spirits in the on-trade in recent years. Just 19 words spelling out no change to the policy and immediately adding a further 5.4p on a pint of beer.
No word yet either on minimum pricing – though of course the government’s Alcohol Strategy announcement is imminent.
But there was a new tax for licensees to worry about – on games machines. In response to “the VAT treatment of gaming machines being repeatedly challenged by operators in the court”, Osborne announced a new Machine Games Duty from February 2013 – with a standard rate of 20% of net takings for AWP and SWP machines. The implication is clear – you challenge me on one tax, I’ll hit you with another.
It was a disappointing budget for licensees insomuch as it seems like the government isn’t listening. If that is the case we must turn up the volume and leave our representatives in Parliament in no doubt that – like the road hauliers who were successful in achieving a VED freeze – we will fight on for fair treatment.
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