CAMRA demands fair play on beer tax

The Campaign for Real Ale today called on Chancellor Alastair Darling to end the special tax treatment of spirits and to support the British brewing industry.

Following last year's Pre-Budget Report, taxation on beer, wine and cider was increased by 8%, whilst spirits were let off lightly with a rise of only 4%. Brewers are likely to come under further pressure when VAT is increased in the new year.

CAMRA wants duty on spirits increased and the cash used to reduce the general duty on beers and allow the zero-rating of lower strength ales, 2.8% abv or below.

CAMRA's chief executive, Mike Benner, said "UK beer duty has been increased by 52% since the current Government came to power in 1997, whilst spirit duty has increased by only 19%.

"The 4% duty concession given to the spirits lobby following last year's Pre-Budget Report should be withdrawn to fund a fair deal for beer and pubs. In the longer term, the difference in the duty rate for spirits and lower alcohol categories should be restored to the levels that Labour inherited when they came to power in 1997.

Beer was the mainstay product of community pubs, he added, and licensees could not survive afford further price increases.

"Community pubs provide a safe and social environment for people to relax with a drink and play a major role in community life. Community pubs should not be made to suffer as a result of unfair rises in beer duty, while spirits get off lightly.

"Any reductions in beer duty must be fully passed on by pub-owning companies to their tied publicans and therefore the consumer. Government should make it clear that it will stamp down hard on profiteering, through new competition legislation if necessary.

"There is a common misconception in the UK that spirits are synonymous with whisky. In fact, whisky accounts for only about 10% of spirit sales in the UK; with alcopops and white spirits (vodka, white rum and gin) making up the lion's share of sales in pubs."