M&C Report outlines industry views of today's Budget announcement that the beer duty escalator will be scrapped, with duty on beer cut by 1p on Sunday. Pub operators and brewers welcome the news, while the cider and spirits industries criticised the fact they don't get the same tax break. Brigid Simmonds, chief executive, British Beer & Pub Association “This is absolutely brilliant news, and it will make George Osborne the toast of Britain’s pubs today. By cutting the tax on beer, he has moved to boost jobs in Britain’s pubs at a time when it is most needed. “In also abolishing the Beer Tax escalator, the Chancellor has ended a hugely damaging policy that would have made Britain’s’ beer the most heavily taxed in Europe. “This will protect thousands of jobs this year, and will allow us to create many new jobs in this brilliant industry. “I want to pay tribute to the hundreds of thousands of people who have supported this campaign. This has been a broad and persuasive campaign uniting the industry and consumers. I hope this heralds the start of a long term change that recognises the benefits of beer and pubs, for the economy, and for society.” Rooney Anand, chief executive, Greene King “Greene King welcomes the Chancellor’s supportive budget for business. In particular, we applaud his timely decision to scrap the beer duty escalator, which has been so damaging to our industry, and to reduce beer duty by 1p per pint. "These measures are a real boost to the great British pub, and in particular, alongside the new employment allowance, to under-pressure licensees in communities across the UK. By encouraging consumers to switch from higher alcohol products such as wines, spirits and ciders, back into lower alcohol beer, the Chancellor is also helping to reduce some of the alcohol-related health and social order issues faced by our society. "While the Government should therefore be congratulated in this bold move, which will improve the health of the nation, help tackle law and order issues and breathe life back into the pub sector, we continue to believe it should go further and introduce a minimum unit price for alcohol, which would be even more targeted in its approach and would not impact on the price of a pint in pubs.” Andy Slee, Punch Taverns “Our customers will be raising a glass to the Chancellor following today's welcome decision to scrap the beer duty escalator and knock a penny off a pint of beer. "Osborne has delivered a welcome break for pub landlords. But that good work could be undone if the government presses ahead with more bureaucracy and legislation on an already hard pressed pub sector." Steve Goodyear, chief executive, Youngs "Today's announcement to scrap the beer duty escalator is a real boost not just for the pub industry but for those areas that benefit from having a thriving local pub at the heart of their community." Michael Turner, chairman, Fuller's "I would like to congratulate the Chancellor on this initiative. It will be excellent news for British manufacturing, British farming, British pubs and British jobs." Simon Cox, UK & Ireland MD, Molson Coors “This cut in beer duty is a very welcome move to help get a great British industry back into growth. We are pleased the Chancellor has listened to Britain’s beer drinkers and we are grateful to our local MP, Andrew Griffiths, for his tireless efforts to champion beer." Jonathan Neame, chief executive, Shepherd Neame "It is fantastic to see the Government recognise the importance of British beer and pubs. By scrapping the beer duty escalator and then reducing beer duty by a penny a pint the Chancellor has provided a great boost for the sector. "British beer was on course to become the most heavily taxed in Europe which, in turn, would have put an unsustainable burden on the country's brewing and pub sector. "Today's announcement is a clear statement that the government recognises the industry’s valuable contribution to both the economy and society at large." "We must thank our customers, our licensees and campaign groups across the UK for their support in helping to show our industry's vital role and potential for the future." Gavin Hewitt, chief executive, Scotch Whisky Association “This is an unfair and incomprehensible attack on the Scotch Whisky industry in its domestic market, where it is a vital part of the Scottish and UK economy and where it supports many other businesses. It penalises responsible drinkers who like a dram rather than a pint. There is no justification for spirits being taxed more heavily than beer. “It also damages all the good work done to create fairer tax regimes overseas to provide a fairer playing field for Scotch Whisky. It hinders the Government’s ambitions for an export-led recovery.” James Staughton, chairman, Independent Family Brewers of Britain "It is fantastic to see the Government recognise the importance of British beer and pubs. George Osborne's announcement to reduce beer duty by 1p per pint and scrap the beer duty escalator is great news for the British brewing industry, particularly family brewers for whom brewing is the mainstay of their business. This news also impacts the 38,000 people currently employed with the family brewers, who rely on the brewing industry for their livelihood. “We are grateful to the 100,000 pub goers who signed the e-petition to scrap the escalator and the support of local MPs for our campaign. “Beer duty has increased by a massive 42% since 2008 so this is welcome relief from the tax burden family brewers face. Family brewers’ members and employees contributed £496.5m to the UK economy last year between excise duty and VAT. “I am confident that this move will help stimulate economic growth and employment in our industry.” Chris Keating, Wychwood brewery manager "The Government has stopped scoring own goals – hitting the normal hard working man from enjoying a pint in his local. "A petition launched by Hobgoblin a year ago reached 100,000 signatures before Christmas - one of only 20 e-petitions ever to do so. "The campaign attracted support of CAMRA, SIBA, BBPA and other beers but most importantly it made sense to the drinkers who never really understood the wording cleverly written by Whitehall Mandarins 'The duty escalator remains' – which should have read – Your pint goes up 2% above inflation every year – (because we can). "A victory for the hard working, pub going regular man of Britain - get down to your pub and celebrate today." Nigel Wright, chief operating officer, TCG “It’s welcome news that we will be cutting beer prices for our customers. Consumer confidence is fragile and we were already looking at ways we could absorb part of the expected duty increase in some of our local and community pubs rather than pass it on in full. It sounds as though the Chancellor has listened to the pub trade’s concerns that the role of pubs as an important community asset, as well as a major employer, needs to be supported.” Steve Magnall, managing director, Thwaites Beer Company “We welcome the Chancellor’s decision to abolish the beer tax escalator. Since it was introduced in 2008, tax on beer has gone up by a staggering 40%. This has had an adverse effect on the sector with record numbers of pubs closing and landlords and their staff losing their jobs and livelihoods. “Any steps made by the government to encourage people back in to pubs where they can drink in a controlled environment is good both on a social and business level.” Keith Bott, chairman, Society of Independent Brewers “We are delighted that the Chancellor has listened to the many voices calling for an end to the duty escalator – and then gone one step further by cutting a penny off the pint. It will be universally applauded by the cash-strapped drinkers, struggling licensees and a growing number of MPs across the divide who have campaigned long for this. “A pint of beer should be an affordable pleasure rather than an occasional treat, and by stopping the escalator and taking a further penny off a pint, the Government is ensuring that draught beer – a relatively low-alcohol drink – remains Britain’s favourite tipple, as it has been for centuries. “This move will generate growth and jobs in brewing, one of Britain’s few remaining manufacturing industries, and in pubs - both sectors that employ high numbers of young people. The revenue to the Treasury from this investment will far outweigh whatever they might have earned from beer duty. “Local brewers benefit from Government investment in the form of Small Breweries’ Relief, which enables them to invest for growth, resulting in a 25% increase in the number of people working in the sector last year. We hope that this beer-friendly Budget from a Chancellor who clearly has been listening to the industry and to drinkers, will help pubs to thrive again at the heart of their local communities.” Andrew Quinlan, founder, Orchard Pig cider maker “Beer is down by 1p and the escalator has been scrapped, whilst cider is still on the escalator and is up by 2p a pint. “Cider is being taxed for growth, innovation and job creation. It almost appears that, in theory, beer is being rewarded for the opposite. Again its the beer market that gets the favouritism in a tough market place. “To put this in context we are well aware that beer tax for big brewers is more than cider tax for big cider manufacturers. Historically this has been because of the extra investment and time required to grow orchards and produce apples. Orchard growers struggle to grow their businesses based on the yield and apple prices they get, the investment they need to make and the time it takes for payback – harvest was awful last year.” Mike Benner, chief executive, Campaign for Real Ale “This is a momentous day for Britain's beer drinkers, who will tonight be raising a glass to the Chancellor for axing this damaging tax escalator and helping keep pub-going affordable for hard-pressed consumers. This decision will keep the lid on the cost of a pint down the pub.” “Since the duty escalator was introduced in 2008, 5800 pubs have been forced to call last orders for good. What could have been the final nail in the coffin for our pubs has been decisively avoided by the Chancellor in a move that will spark celebration in pubs across the UK. “Scrapping the beer duty escalator, combined with a 1p cut, is a massive vote of confidence in British pubs and will lead to an increase in pub going and more money in the Chancellor’s coffers. “Today’s decision is a huge triumph for CAMRA’s pub campaigners who have been building overwhelming public support for a fair deal for beer and pubs, pub by pub and beer festival by beer festival. Over 108,000 consumers signed an e-petition and more than 8,000 consumers have written to their MP calling for a fair deal for beer and pubs. A Mass Lobby Day organised by CAMRA saw over 200 MPs meet with their constituents who highlighted the severe damage caused by the escalator.”

Topics