Beer duty increase 'signs death warrant for pubs'

23/04/2009

Pubs will come under pressure as a result of the Budget - with chancellor of the exchequer Alistair Darling confirming yesterday that beer duty would increase by two per cent above inflation.

This means that the average pint is likely to rise significantly in price over the months to come, hitting sales further at pubs and bars who are already struggling in the credit crunch.

Mr Darling's move was strongly criticised by the British Beer and Pub Association (BBPA), which released figures recently showing that 70 per cent of the public did not support the tax increase.

"Today's Budget signs the death warrant for thousands of Britain's pubs and for tens of thousands of British jobs," the BBPA said in a statement.

"In imposing these additional beer taxes, the government has wilfully ignored the views of the public, landlords, consumer groups, industry representatives and MPs from all parties who have been calling for action to save the British pub … At a time when the rest of the economy is getting a supporting hand, the beer and pub industry is being singled out for punitive action."

Other measures announced in the Budget and aimed at helping boost the recession-hit economy include the extension of the stamp duty suspension on properties worth £175,000 and under by three months to the end of the year.

Mr Darling also admitted in his speech that government debts would hit £175 billion this year.

Tags; Current UK Economy, Credit Card Lifestyle, Recent Graduate Debt,

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