Beer duties to soar 9.4%

From the morningadvertiser.

Trade leader Tony Payne has warned the Chancellor beer duty would rise to a massive 9.4% from 1 January if it isn’t cut when VAT returns to normal.

The Federation of Licensed Victuallers Associations chief has written to Alistair Darling pointing out that VAT of 17.5% will be slapped on the 8% beer duty from 1 January. This works out at a rise of 9.4%.

It comes as support within the trade is growing for Payne’s campaign to make the Government see sense on alcohol duty.

He wants duty reduced by 8% for beer, and 4% for spirits, when VAT rises from 15% to 17.5% at the start of 2010 and urges licensees, pubcos and other in the industry to get their MPs on board.

That won't happen. As I covered that here and I quote the words of Angela Eagle the Minister for paperclips at the treasury who said "Due to EU legislation the Government is not able to give a different tax treatment to the same product. This makes it impossible to tax the sale of alcohol in one place differently to another.”

Payne said his call has gained the backing of a pubco that is to raise it at an upcoming meeting of the British Beer and Pub Association.

Ex-licensee Inez Ward, who runs the Justice for Licensees campaign, said she’ll email all 365,000 JFL members urging them to contact their MPs in support of Payne’s call.

“It’s important for all sectors of the trade,” said Ward. “The trade has been hit by increasing tax hikes for the last few years.”

But she added: “I will be writing to the brewers and pubco executives that they must undertake for any decrease [in duty] to be passed on. It’s not to go into their pockets. I’m doing this for the licensees and for the consumers.”

**Remember a vote for Labour is a vote for higher taxes, more closed pubs and the destruction of local communities that use them.

We hear from assorted health quango's for higher taxes and yet the pub trade provides:

• The Drinks Industry contributes £14.79 billion a year to the economy (Source: House of Commons library)
• Each pub contributes an average of about £90,000 in taxes
• 84% of pubs are family-run businesses
• 350,000 people are directly employed by pubs
• On average, each pub contributes about £3,000 to charities in their areas
• Since the last Budget, more than 2,000 pubs have closed, costing the Government £180 million in lost revenue, with the loss of 20,000 jobs
• In the Tewkesbury Constituency 11 pubs have closed since June 2005
• An increase in alcohol duty in the 2009 budget would result in an additional 75,000 jobs lost in the following two years. (Oxford Economics)
• 39 pubs a week are closing(as of April 2009)

The campaign - below - which has the contact your MP section, is a good idea. Although and this is the negative bit, the decisions have already been made. Your MP will forward the details to the Minister for paperclips at the treasury, Angela Eagle. She in turn will send out a stock letter which I detailed here.

This makes clear that the rises in duty will cover Government spending plans, in short Gordon can't balance the books and so you pay.

I argue it is a good thing to show government, especially one as corrupt and evil as this one that we disagree.

Also as you all pay an MP £64 grand a year to do nothing, they might as well forward a letter for that huge sum and a Minister for paperclip gets a stock letter sent out to you. Democracy in action folks.

Get involved — back the campaign for a fair deal

• Find your MP's contact details here. Post or email him the letter. Download the template letter by clicking here.

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