Publicans call for alcohol taxation rethink

Date: 29th July 2008

The owners of the UK's pubs have blamed the government's taxation policy for falls in the sales of beer across the country.

Data released by the British Beer and Pub Association (BBPA) showed that beer sales dropped 4.5 per cent in the last three months when compared to the same months in 2007.

In particular, the figures showed that beer sales in pubs, bars and restaurants are down 10.6 per cent over the same period.

Releasing the survey results, BBPA chief executive Rob Hayward blamed falling consumer confidence, the rise of home drinking and the current alcohol taxation regime for the decline.

He explained: "Beer sales are on the slide and the tax increase in the Budget has made it worse.

"We need a change of approach from the government. Brewing is a major industry, beer our national drink and pubs a treasured part of our national culture.

"Yet with further duty increases planned, the Treasury continues to see the brewing industry as a 'cash cow' to be milked in future budgets."

What's more, the BBPA estimated that the Treasury has collected £88 million less in beer duty and VAT than in the same period last year as a result of this slump.