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Call for freeze on beer duty

21st March 2011

Newly released figures by leading economists Oxford Economics, have shown that the beer and pub sector sustains almost 9,000 jobs in Bedfordshire and is capable of generating many more given a supportive duty regime. The analysis also shows that the local economy is £176 million better off thanks to the industry.

Paul Wells, chief executive of Charles Wells (pictured right) which owns the Bedford-based pub company and Wells and Young’s Brewery, says these new figures show the need for the Government to scrap the controversial beer duty “escalator” in next week’s Budget.

The recent VAT increase (6p per pint), followed a 26 per cent increase in beer duty since 2008. The vast majority (85%) of pubs are small businesses which cannot absorb these tax shocks, further increasing the price differential between pubs and supermarkets. With the current high rate of inflation the sector is facing a further, huge 7.1 per cent beer tax increase via the “escalator” in March. This would result in beer duty having increased by 35 per cent in three years.

Paul Wells is supporting a joint campaign led by the British Beer & Pub Association (BBPA) and the Campaign for Real Ale (CAMRA), to freeze beer duty and scrap the controversial beer duty escalator ahead of this year’s Budget.

Wells said: “We have been brewing and running pubs in Bedfordshire for over 100 years but the Government is making it harder and harder for our industry. As one of Bedfordshire’s largest employers and with the beer and pub sector injecting over £176million into our local economy each year, I urge the Government to think twice about the destructive duty escalator in the forthcoming Budget.”

Brigid Simmonds, Chief Executive of the BBPA, adds: “The broad support for our campaign reflects the strategic importance of beer and pubs in Britain. The beer and pub sector is ready, willing, and able to create jobs and help lead the country out of recession – but we need the right tax policies from the Government.”