Beer taxation rise puts '75,000 jobs at risk'

Date: 2nd March 2009

More than 75,000 jobs could be at risk if the government goes ahead with plans to increase taxation on alcohol.

That is according to the British Beer and Pub Association (BBPA), which has urged Westminster to abandon its proposed two per cent over inflation tax "escalator", which is due to be introduced this month.

Commissioned research by Oxford Economics also found that taxation increases could see consumer prices rise by 17 per cent and sales fall by more than a tenth.

In a joint statement, the five major drinks trade associations said: "We urge the government to reconsider before it is too late for thousands of wage earners and families.

"Our industry is being hit just as hard as any other UK manufacturing and retail sector."

The statement added that the industry was "not asking for a handout", but only to reconsider further taxation increases.

Recent figures published by the BBPA revealed that pub closures accelerated from 36 per week in the first two quarters of 2008 to 39 per week in the second half of the year.