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![]() AXE THE BEER TAXIn our opinion - pubs are one of the mainstays of the local community and, as such, should be cherished. They are and will continue to become more diverse in order to keep afloat. As a nation we have many difficult issues to deal with at the moment and what a comfort it would be to consumers and publicans alike if the pub stood firm and viable from a business perspective, as a place where locals and visitors can come together in a socially responsible manner, relax and have good conversation over a good pint of beer and maybe some food. Sadly, our current government struggles to see the wood for the trees. Last year, much the same as previous years, we all prayed for reprise in the annual duty increase of 1p on the pint of beer. We certainly had a change - but for the worse. We have been promised an actual increase of over 4% in March with the promise of a price escalator of 2% above the rate of inflation increase for the next 5 years. To make things worse, a wild card duty increase was also levied in November of the same year, bringing the 2008 increase to an astonishing 8%, which would equate to over 20p per pint on the bar. This makes previous duty increases of 1p on the pint seem quite reasonable. My sources tell me that the later increase was conceived in a matter of days rather than part of the planned annual taxation. This increase was raised behind the smoke screen of VAT reduction from 17.5% to 15%, leaving landlords and consumers, in reality, worse off. We have to question whether the government cares or simply thinks that raising duty is an easy hit on the public purse. I imagine they will assume that the good old beer drinker will soon forget about the increase and get back to the bar. I think not. My point is that there comes a point, especially with the economy in its current state, that our drinkers will say "I can't afford it any more". This combined with the ludicrous rent and product costs that many landlords have to bear, can only add to the demise of our greatest institution - the pub. We must not allow cheap beer at our supermarkets to become the alternative.. Anyway, don't get me started on that one - maybe minimum pricing is not such a bad thing (if only the concept was fully understood) - I'll save that for next time.
In the meantime, I would urge landlords and customers alike to add your vote to Axe the Tax campaign - www.axethebeertax.co.uk which we at the brewery fully support. Who knows, they may just lift their heads. |