Beer Tax Hike Draws Objections From 70% Of UK Citizens

by Robin Pilgrim, LawAndTax-News.com, London

02 March 2009

Following on from a recent warning from the UK's drinks industry that over 75,000 jobs will be at risk if the government proceeds with its current plan to increase taxes on alcohol over the next four years, it has emerged that around 70% of individuals in the UK are in opposition to the move.

According to the industry, 7 out of 10 people questioned are strongly opposed to the introduction of an above-inflation tax hike on beer, to be introduced by the next budget in April, with around 83% of individuals believing it will further damage the dwindling sense of community spirit within the country.

The British Beer and Pub Association (BBPA) announced late last month that the tax increase could put around 75,000 jobs in jeopardy if introduced, as it does little to support pubs suffering under the current recession.

The BBPA launched a campaign against the tax last November - entitled "Axe the Beer Tax, Save the Pub" - and has since been conducting surveys to obtain the views of British citizens on the matter.

According to the BBPA, around 6 in 10 people are convinced that pubs are vital components of local communities, with the government failing to recognize the important part they play in economic growth.

Rob Hayward, chief executive of the BBPA, explained:

"The British beer and pub industry supports 650,000 jobs and makes a vital contribution to the British economy. Yet it has been hit by a succession of tax increases alongside more and more regulation. Nearly six pubs are closing every day across the country, and thousands of jobs are being lost."

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