E-Malt.com News article: 4449

United Kingdom: From Sunday, excise duty on a pint of beer is to rise by 1p. The Campaign For Real Ale (CAMRA) has criticised the 1 pence increase in beer duty announced by Gordon Brown in today's Budget (March 16, 2005), according to Manchester Online. The consumer group said it was a "double blow for beer drinkers" as it comes just weeks after both the Coors and Carlsberg breweries and pub chain Enterprise Inns raised their prices.

Brown put 1 pence on a pint of beer, 4 pence on a bottle of wine and held steady the rates on spirits, cider and sparkling wine. Duty on cigarettes rose 4 pence a packet.

Mike Benner, chief executive of CAMRA, said: "This is a disappointing Budget for beer drinkers. A penny may not sound like much, but today's tax rise follows recent wholesale beer price rises by some brewers. "Some pubs will now be charging as much as 10 pence a pint more than they were only a month ago. At a time when beer consumption is falling and pub-going is in decline this is a potentially devastating outcome for consumers and hard-working licensees."

CAMRA had wanted cut beer duty to be frozen or cut, believing this would reduce the amount of beer being smuggled into the country.

"A penny may not sound like much, but today's tax rise follows recent wholesale beer price rises by some brewers. Some pubs will now be charging as much as 10 pence a pint more than they were only a month ago. At a time when beer consumption is falling and pub-going is in decline this is a potentially devastating outcome for consumers and hard-working licensees."

Mr Benner added: "A tax rise is a flawed strategy which will cost jobs, increase smuggling and uncontrolled drinking and leave responsible beer drinkers out of pocket."

Gordon Brown's decision to raise beer duty was also attacked by Britain's brewers. "It is very disappointing that Gordon Brown continues to choose a tax strategy that favours imported Australian chardonnay over home produced British beer", said Mark Hastings, director of communications at the British Beer & Pub Association.


16 March, 2005