Beer industry reacts positively to duty cut

The beer industry has reacted positively to George Osborne’s Budget announcement that he will scrap the beer duty escalator and cut beer duty by 1p.

Although the duty escalator is still in place on other alcohol, many people in the industry have expressed their delight that the beer duty escalator has gone.

Society of Independent Brewers chairman Keith Bott said, “We are delighted that the chancellor has listened to the many voices calling for an end to the duty escalator – and then gone one step further by cutting a penny off the pint. It will be universally applauded by the cash-strapped drinkers, struggling licensees and a growing number of MPs across the divide who have campaigned long for this.

“A pint of beer should be an affordable pleasure rather than an occasional treat, and by stopping the escalator and taking a further penny off a pint, the government is ensuring that draught beer – a relatively low-alcohol drink – remains Britain’s favourite tipple, as it has been for centuries.”

Brigid Simmonds, chief executive of the British Beer & Pub Association was also delighted, she said: “This is absolutely brilliant news, and it will make George Osborne the toast of Britain’s pubs today. By cutting the tax on beer, he has moved to boost jobs in Britain’s pubs at a time when it is most needed.

“In also abolishing the beer tax escalator, the chancellor has ended a hugely damaging policy that would have made Britain’s’ beer the most heavily taxed in Europe.”

Perhaps not surprisingly brewers are also very happy to see the beer escalator scrapped. Steve Magnall, MD of Thwaites Beer, said: “We welcome the Chancellor’s decision to abolish the beer tax escalator. Since it was introduced in 2008, tax on beer has gone up by a staggering 40%. This has had an adverse effect on the sector with record numbers of pubs closing and landlords and their staff losing their jobs and livelihoods.

“Any steps made by the government to encourage people back in to pubs where they can drink in a controlled environment is good both on a social and business level.”

While Simon Cox, MD of Molson Coors UK, added: “This cut in beer duty is a very welcome move to help get a great British industry back into growth. We are pleased the Chancellor has listened to Britain’s beer drinkers and we are grateful to our local MP, Andrew Griffiths, for his tireless efforts to champion beer.”

Stefan Orlowski, managing director of Heineken UK said: “The news today from the Chancellor provides a much needed boost for beer drinkers and the great British pub. The end of the beer duty escalator and a cut of 1p a pint will go a long way to helping secure jobs in our industry and preserving the pleasure of a hard earned pint at the end of the day. We will pass this duty saving on to all our customers as soon as it becomes effective.”

And the Campaign for Real Ale (Camra) said that beer drinkers would be “raising a glass to the chancellor for axing this damaging tax escalator”. Camra’s chief executive Mike Brenner added: “Scrapping the beer duty escalator, combined with a 1p cut, is a massive vote of confidence in British pubs and will lead to an increase in pub going and more money in the chancellor’s coffers.”