Turner: no "justification" for duty increase
Michael Turner, chairman of Fuller, Smith & Turner, has criticised the Chancellor for increasing the duty on alcohol by 8% saying there is no "justification" for the rise.
He said the Chancellor was already making fifty times more from a pint than the four largest brewers in the country.
Turner also accused the government of treating the brewing and pub industry as a "golden goose" for tax income.
He said "We already have the highest beer duty in Europe, and there is no justification for piling on another 8%.
"The Chancellor's increase in his spring budget of 9.1% coming on top of the smoking ban had already damaged beer volumes so badly that he is getting less income from beer duty than he did last year.
"The Treasury must stop raising taxes otherwise, as they must realise, they will kill the golden goose, and the traditional British pub with it.
"Before this latest increase the Chancellor was already making fifty times more out of each pint than the four largest brewers in the country."
Robert Milburn, UK hospitality & leisure leader for Pricewaterhouse Coopers said that the government had taken away most of the impact of the VAT cut with the increase in duty.
He said: "This VAT cut is designed to stimulate spending as hoteliers, restaurateurs and pub landlords pass on the tax break to the consumer. Whilst every little helps, the impact of the reduction is likely to be muted.
"The big question for management is how quickly can companies re-programme their systems to calculate and make the most of this lower VAT? Following the current consultation on tips this adds to the head scratching and number crunching the industry faces.
"In addition, the rise in alcohol duty will offset any slight benefit the VAT reduction may offer for pubs and restaurants. However the proposal to allow these businesses to spread payment of their tax bills over a time period they can afford should help the H&L sector cope with their seasonal fluctuations in turnover."
