Increase in Beer Duty May be Larger than it Appears

Thu, 23 Apr 2009

The Chancellor has unveiled the latest budget, with an increase in duty on the price of beer, wine and spirits . As of today, 4p has been added to the price of a bottle of wine, 5p to a bottle of sparkling wine, 13p to a bottle of spirits and 1p to a pint of beer . The increases follow two increases made by Alistair Darling last year, when he initially increased duty by roughly 9 per cent to 34p a pint, before adding almost another 3p in duty. A further 2 per cent has been added to this price with yesterday’s announcement, whilst the increase in VAT to its original rate of 17.5 per cent will further hit drinkers.

CAMRA, the campaign group for real ale, warned that the increase may be greater than it appears. Iain Loe of CAMRA warned that the duty increase of 1p may end up adding 4p to the price of a pint as the pub, pub company and pub landlord all up their prices. According to pub leaders, this increase could be severely damaging to the industry, already damaged by fierce competition from supermarkets driving down the prices of lager .
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