MPs team up to campaign against beer tax increase
LONDON (Reuters) - Over 100 British lawmakers (MPs) have called on the government to axe plans to increase beer tax in its 2009-10 budget amid fears thousands of jobs could be lost through pub closures.
The British Beer and Pub Association (BBPA) said 113 MPs — 50 Labour MPs, 40 Liberal Democrats, and 17 Conservatives — had signed an early day motion in support of its "Axe the Beer Tax - Save the Pub" campaign.
Some 20,000 members of the public have also registered to support the campaign, launched in November.
"The thousands of people who have lobbied their MP over the last few weeks is a clear demonstration of the deep concern and anger felt among landlords, customers and the wider public," BBPA chief executive Rob Hayward said. The Treasury, which has committed to an above-inflation alcohol duty rise in the upcoming budget, infuriated pub companies by increasing tax on alcohol in November to offset the benefit to the industry of a 2.5 percent cut in VAT sales tax.
Pubs have already been struggling against the backdrop of a smoking ban, the recession, and cheap offers in supermarkets encouraging drinkers to stay at home.
Pub beer sales fell 9.9 percent in the fourth quarter of 2008, taking sales down to their lowest level in over 40 years, according to the BBPA. The result has been a £181 million ($269 million) decline in beer tax since last year's budget.
The BBPA says an average of 39 pubs closed across Britain each week in the second half of last year and 44,000 jobs have been lost across the sector in the past two years.