Beer industry lobbies Government for duty freeze

Representatives of the British beer industry met with Treasury officials today to make the case for a duty freeze in this month's Budget.

Ted Tuppen, chief executive of Enterprise Inns, John Dunsmore, chairman of the British Beer & Pub Association (BBPA); and Rob Hayward, chief executive of the BBPA met Treasury minister John Healey to argue the case.

Chancellor Gordon Brown will announce this year's Budget on 22 March, and the BBPA is calling for a freeze after beer sales declined 2.2% in 2005 and a thousand jobs were lost in the sector.

Hayward (above) said: "It's time for the Government to stand up for beer. Ninety per cent of the beer consumed in Britain is made in Britain, while 99% of the wine sold in the UK is imported."

The beer industry also wants a review of the tax treatment of wine.

The BBPA said that while beer was taxed according to narrow bands of alcoholic strength, the wine industry paid less tax because it was rated in broader bands.

With the average strength of wine increasing over the years, the group argues that wine is getting an easier ride and has cost the Treasury more than £200m in lost tax.

The beer and pub sector contributes £25b towards the UK's economy.

By Chris Druce

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