CAMRA Calls for Fair Deal for Beer in Pre-Budget Report

CAMRA has written to the Chancellor asking him to end the special treatment of spirits in order to fund a reduction in beer duty and a zero rate of duty for beers 2.8% abv or below and to help compensate for the forthcoming increase in VAT. Following last year's Pre-Budget Report excise duty on beer, wine and cider was increased by 8% whilst spirits were let off lightly with a rise of only 4%.

Mike Benner, Chief Executive of CAMRA, 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 The 4% duty concession given to the spirits lobby following last year's Pre-Budget Report should be withdrawn to fund a fair deal for beer and pubs.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.

'The money generated from reversing the special treatment of spirits should be used to scrap duty on low strength beers and to reduce the main rate of excise duty on beer. Unlike spirits, beer is the mainstay product of community pubs which simply cannot 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.