Pubs and brewers pleased at Budget tax help
8:00am Thursday 21st March 2013 in News
Hans Hoffbauer
THE Chancellor’s changes to beer tax have gone down like nectar with local lovers of a good pint.
George Osborne revealed in his Budget that next month’s planned 3p rise in beer duty will be scrapped, and that duty will instead be reduced by a penny.
In addition, the annual inflation-plus-two-per cent duty escalator is to be scrapped for beer.
The news was greeted with delight by Hans Hoffbauer, who chairs the Swindon branch of CAMRA, the Campaign for Real Ale.
“I think it’s very good news,” he said.
“It seems that CAMRA have won the argument that there is too much tax on beer and it drives people away from pubs.
“A penny doesn’t seem a lot but it’s a step in the right direction.
“I can see that if the Chancellor reduced beer tax by a lot he would have to find money from somewhere else, so we would not expect a huge reduction, but at least he acknowledged that something had to be done.”
Swindon brewery Arkells also welcomed the cut. Director George Arkell said: “I’m absolutely delighted.
“The Independent Family Brewers of Britain have campaigned long and hard for this alongside other beer organisations such as the Society of Independent Brewers and CAMRA.”
Unfortunately for people in the pub trade, the Budget news wasn’t all good.
The duty escalator may no longer apply to beer, but it is still firmly in place for ciders, wines and spirits.
Mr Arkell said the concessions on beer were a good start, but added: “There’s more work to do.”
Landlord Peter Richardson of the Rat Trap in Stratton St Margaret was less enthusiastic.
“It’s the tip of the iceberg,” he said.
“They still need to do more for the working class.
“We’ve only just in February had a price increase from our suppliers.”
In addition to paying more for beer, Mr Richardson said the price of English meat, another of his expenses, had gone through the roof in light of the recent crisis, although he insisted he would avoid passing on the increases to his customers for as long as possible.
James Gray, the Conservative North Wiltshire MP, said: “I strongly welcome the Chancellor’s announcement to not only scrap Labour’s planned rise in beer duty, but to turn it on its head by instead cutting it by a penny.
“Beer will now be 1p per pint cheaper after Sunday night, and 4p cheaper than it would have been under Labour.
“The previous Government increased beer duty by 60 per cent and left our pubs fighting for survival.
“Today’s announcement will therefore be great news for beer drinkers, breweries, and the 5,398 excellent pubs which proudly call the south west home.”
Comments(22)
peatmoor pirate
says...
9:24am Thu 21 Mar 13
Tim Newroman wrote:If you knew anything about the pub industry, you would know just how little money is made on each pint of beer sold in a pub. It is a wonder any of them stay in profit.
It is true that Labour all but decimated the pub industry in the UK with their demented policies.
The decision not to increase beer by 3p a pint is very welcome.
While it's always surprising to see any tax cut, I don't think anyone really believes the 1p reduction will make any difference. Pubs won't pass on the cut and they need to sell 1000 pints just to see an extra £10 in their till.
Still, at least this should mean the pubs don't have their bi- annual excuse to see a 2p per per pint rise in the budget and then hike their pump prices by 5p.
Morsey
says...
9:52am Thu 21 Mar 13
Tim Newroman
says...
9:56am Thu 21 Mar 13
Even a person who knows nothing about the pub trade doesn't have to work too hard to know what the margins are like on most pub drinks.
Sure, tied pubs pay ridiculous prices for their pints, but they still make enough on them that an additional 1p isn't going to mean the difference between staying open or closing.
As I implied above, this budget could actually be worse for the pubs as they'll not now have an easy excuse for putting the price of a pint of 5p this weekend.
Tim Newroman
says...
10:18am Thu 21 Mar 13
Morsey wrote:They've raised the tax threshold to £10,000 FFS. What more do you communists want?
The brewers who put ale in cans (then to the supermarket) are the ones killing the pubs ... this is, once again, a political gimmick by yet another inept C of TE ... if only they lived in the real world?
house on the hill
says...
1:54pm Thu 21 Mar 13
9:52am Thu 21 Mar 13
The brewers who put ale in cans (then to the supermarket) are the ones killing the pubs ... this is, once again, a political gimmick by yet another inept C of TE ... if only they lived in the real world?”"""
Surely that is more about the freedom of choice of the individual as to where they buy their alcohol? No one forces you to buy it in a supermarket and for many leaving home to go to a pub as often as they would like simply isnt an option. As others have said, not sure it will actually make that much of a difference for 1p.
semitonic
says...
4:47pm Thu 21 Mar 13
Good old "any excuse" Andy.
RichardR1
says...
5:56pm Thu 21 Mar 13
It only works if you are either a heavy drinker and/or drive thousands of miles.
Pompey-Bound
says...
2:07am Fri 22 Mar 13
RichardR1 wrote:Sour grapes Robbo? I should think everyone but a failed landlord would be happy!
So much excitement, will mean little to pubs or customers in reality. Strange how paying less for petrol and beer seems to gender such hysteria.
It only works if you are either a heavy drinker and/or drive thousands of miles.
Localboy86
says...
8:13am Fri 22 Mar 13
Tim Newroman wrote:Surprise surprise you know best again, must be all that "research" you do lol
Haha, I know a lot more than you obviously realise about the pub industry.
Even a person who knows nothing about the pub trade doesn't have to work too hard to know what the margins are like on most pub drinks.
Sure, tied pubs pay ridiculous prices for their pints, but they still make enough on them that an additional 1p isn't going to mean the difference between staying open or closing.
As I implied above, this budget could actually be worse for the pubs as they'll not now have an easy excuse for putting the price of a pint of 5p this weekend.
RichardR1
says...
10:03am Sat 23 Mar 13
You continually mention him says more about you than him.
As for the price decrease, guess you didn't read the comments of the Rat Trap boss.
semitonic
says...
11:00am Sat 23 Mar 13
Pompey-Bound
says...
3:21pm Sat 23 Mar 13
RichardR1 wrote:How is life at B&Q these days Robbo?
Pompey what a sad little man you must be. Your total obsession with the departed Landlord is really tragic.
You continually mention him says more about you than him.
As for the price decrease, guess you didn't read the comments of the Rat Trap boss.
RichardR1
says...
11:54am Sun 24 Mar 13
Semitonic keep up with the delusions.
semitonic
says...
5:09pm Sun 24 Mar 13
You'l be telling us next you've moved to Pompey!
Oh wait, that was another lie.
RichardR1
says...
6:53am Mon 25 Mar 13
As those of us who have real people as friends living in South Marston, we know where the couple moved too. Clearly you don't.
semitonic
says...
12:57pm Mon 25 Mar 13
"Robert and Barbara Feal-Martinez will say goodbye to The Carpenter’s Arms Motel to join their son and grandchildren in Portsmouth"
you were clearly quoted in the article as saying;
"I have been doing this for 27 years and the time is right to watch the grandchildren grow up. It’s something we didn’t want to miss out on."
So who is lying, you or the SA?
With a proven, recorded history of lying on your part I think I know who to believe. I can also say that if you were indeed lying again and you have not departed our town then I imagine you have sorely disappointed a great many people who thought they'd never see your sorry arse around here again.
itsamess3
says...
4:08pm Mon 25 Mar 13
RichardR1 wrote:You think you recall? Dont worry too much though as we know where he is and what he is doing--would you believe advising people how to buy-rent lease pubs/hotels and manage clubs as he has owned so many.
I see not letting the truth get in the way semitonic as usual. I think I recall that Robfm never stated he was moving to Pompey, the SA article did. He always maintained he wasn't.
As those of us who have real people as friends living in South Marston, we know where the couple moved too. Clearly you don't.
Tim Newroman
says...
9:27am Tue 26 Mar 13
Localboy86 wrote:Well, it certainly beats your uninformed, ill-considered posts, yes.
Tim Newroman wrote:Surprise surprise you know best again, must be all that "research" you do lol
Haha, I know a lot more than you obviously realise about the pub industry.
Even a person who knows nothing about the pub trade doesn't have to work too hard to know what the margins are like on most pub drinks.
Sure, tied pubs pay ridiculous prices for their pints, but they still make enough on them that an additional 1p isn't going to mean the difference between staying open or closing.
As I implied above, this budget could actually be worse for the pubs as they'll not now have an easy excuse for putting the price of a pint of 5p this weekend.
RichardR1
says...
7:07am Thu 28 Mar 13
So Mr Itsamess, don't be shy, if you know where he is why not say. After all if you found it then it is clearly already in the public domain, or is this just another of your secrets because you used the security services to find him.
itsamess3
says...
10:12am Thu 28 Mar 13
RichardR1 wrote:Does any of that have anything to do with the article?
Seems 'I don't use the internet,' Mr Itsamess may have been Googling again.
So Mr Itsamess, don't be shy, if you know where he is why not say. After all if you found it then it is clearly already in the public domain, or is this just another of your secrets because you used the security services to find him.
RichardR1
says...
11:54am Mon 1 Apr 13
But of course as usual you choose to become the site moderator when you are challenged to put up or shut up.
Tim Newroman says...
8:07am Thu 21 Mar 13
The decision not to increase beer by 3p a pint is very welcome.
While it's always surprising to see any tax cut, I don't think anyone really believes the 1p reduction will make any difference. Pubs won't pass on the cut and they need to sell 1000 pints just to see an extra £10 in their till.
Still, at least this should mean the pubs don't have their bi- annual excuse to see a 2p per per pint rise in the budget and then hike their pump prices by 5p.