Statist destruction: UK Beer Tax Hikes Cost 20K Jobs So Far

A record 2,000 British pubs have closed with the loss of 20,000 jobs since the chancellor, Alistair Darling, increased beer tax in the 2008 budget, new figures published by the British Beer and Pub Association reveal today.

The figures came alongside a separate forecast by Oxford Economics that 75,000 more jobs in the drinks industry are at risk. The finding is based on the impact of last year's 18% increase in excise duty and the implications of the four-year drinks tax escalator.

The two beer tax increases placed an additional £520m cost burden on the sector, the data show.

Publication of the new figures comes on the day that five ministers are due to be questioned on the issue by MPs at a Commons emergency summit.

They include the home office minister, Alan Campbell, and the treasury minister, Angela Eagle.

Rob Hayward, the chief executive of the British Beer and Pub Association said: "These new figures reveal the true scale of the struggle facing the beer and pub industry.

"There was understandable political concern about the recent 850 job losses at (carmaker) Mini – the pub sector is losing nearly twice as many jobs every month. Furthermore, when a pub closes a family loses not only its livelihood but also its home.

"The beer and pub industry is not looking for a handout, just hands off any further tax or regulation increases."

He said the organisation was urging the government to abandon the 2% over inflation drinks tax escalator, due to begin in March, and pledge no further increases in excise duty in this year's budget.

"We are also asking them to abandon the mandatory code in the policing crime bill , which the government says will cost the industry an extra £300m this year alone and lead to further job losses and pub closures," Hayward said.

The new mandatory code of practice for alcohol retailers, which will replace an existing voluntary code, is designed to ensure more responsible retailing of alcohol by banning many drinks offers and ensuring bar staff are properly trained.

Mike Benner, the chief executive of the Campaign for Real Ale, said: "There are sound reasons for the chancellor to change his mind on this issue.

"The entire economic picture has changed beyond recognition in the last 12 months and, with the return of Keynesian economics, I hope [he] might draw some inspiration from one the great economist's most famous lines: 'When the facts change, I change my mind.'

"Scrapping the increases in beer tax would be a truly popular piece of Keynesianism."

Political pressure on ministers increased last month when Britain's largest union, Unite – which has 20,000 members in the industry – strongly backed the campaign to scrap further beer tax increases.

The Liberal Democrats and Conservatives are supporting action to save British pubs.

A Commons early day motion backing pubs, tabled by the Liberal Democrat MP Bob Russell, has so far received the support of 160 MPs from all parties, including 76 Labour MPs.

http://www.guardian.co.uk/politics/2009/mar/04/pub-closures-beer-tax

Statist destruction: UK Beer Tax Hikes Cost 20K Jobs So Far

Statist destruction: UK Beer Tax Hikes Cost 20K Jobs So Far

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