Trade pushes for lower duty on draught
Trade bosses are urging Government to consider lower alcohol duty on draught beer after Gordon Brown rejected calls for minimum pricing that would curb deep discounting by supermarkets.
The British Beer & Pub Association has called on Treasury officials to consider reduced excise duty on draught, to help the pub trade counteract cheap off-trade drink prices.
Twenty-one MPs have already signed an Early Day Motion petition for lower duty on draught beer and cider, to help struggling pubs fight back.
The two-band system was floated by trade leaders at the recent meeting with Government ministers to discuss the damaging effects of excise duty on the trade.
The BBPA has drafted other possible tax and duty concessions with Treasury officials in meetings over the past 12 months. Other suggestions include reduced VAT for on-sales, zero or reduced rate duty on lowerstrength alcohol products, lower business rates for pubs and clubs, and abolition of amusement machine duty.
Treasury officials have also been asked to consider re-structuring progressive beer duty, which currently gives tax concessions to smaller brewers.
A number of the suggestions were raised again by pubco bosses who met Government ministers last week to discuss the punitive effects of excise duty on the pub and brewing industry.
Shepherd Neame chief executive Jona-than Neame said: "We are putting forward a variety of different ideas to help pubs.Collectively it comprises a powerful package, and we just hope some will receive proper consideration."
The MA has previously reported that Treasury minister Angela Eagle said different alcohol tax regimes for pubs and the off-trade would not comply with EU laws.
But trade bodies hope a current review of the relevant directive might herald changes to the structure of excise duty within the EU.
Measures advocated by the BBPA have assumed more urgency following the Government's rejection this week of minimum pricing.
Chief medical officer Liam Donaldson has recommended a minimum 50p
per alcohol unit price,
which would have meant the end of supermarket loss-leader prices and other in-store drinks promotions.
BBPA director of communications Mark Hastings said there are "pros and cons" to minimum pricing.
"In favour, it would undoubtedly mean supermarkets no longer able to follow current sales practices. But equally, there are hidden dangers; once you have minimum pricing, would that become the lobbying point for the health community to try to drive up prices across the board?"
Association of Licensed Multiple Retailers chief executive Nick Bish called for "restrictions on access to product and a ban on below-cost sales. It works effectively in many other EU countries and would be fairer, quicker and easier to apply than a minimum-pricing scheme," he said.
