United Kingdom: British Beer & Pub Association content with beer duty reduction

British Beer & Pub Association was pleased that Government has decided to reduce duty for beer below 2.8 per cent, Brigid Simmonds, BBPA Chief Executive, said on November, 30.

The decision will provide a welcome incentive for further investment in these beers, and encourage people to choose lower-strength drinks, BBPA believe.

“There are also welcome signs that when it comes to beer and other lower-strength drinks, the Government recognises that moving towards duty based solely on alcohol content across all drinks would “significantly penalise responsible drinkers.” It is also encouraging to see an explicit recognition that pubs are hit far more than supermarkets when it comes to duty increases.

“However, when it comes to the increase in duty on higher-strength beers, these account for less than half of one per cent of total alcohol sales, and less than one per cent of beer sales. Duty rates remain untouched for higher strength drinks such as spirits and wine.

“Overall, we need a duty system that nudges consumers to choose lower-strength, pub-based drinks such as beer. It would create a win-win situation - a more balanced system of alcohol taxation that would bring in more revenues, and create up to 30,000 jobs in the UK,” Ms. Simmonds said.

03 December, 2010