Wednesday, 22 April 2009

A kick in the teeth for pubs

Despite intensive lobbying from many quarters, Alastair Darling did not flinch from his plan to increase alcohol duties by 2% above the rate of inflation. In fact, it's even worse than that, as he has used a notional zero inflation rate rather than the -2.25% which is actually forecast. This vindictive, short-sighted measure will undoubtedly accelerate the closure of many more pubs and, ironically, is unlikely to bring in any additional revenue as we are now past the point of diminishing returns from alcohol duties. The only people this will benefit are smugglers and the owners of discount booze warehouses in Calais.

4 comments:

  1. Good point about the importation of contraband booze. There is government documentation on that somewhere,....now where did I see it.

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  2. When the VAT rate dropped to 15% they put up the duty by 8% - Just wait until December when the VAT goes back up - We'll have another 10 pence price rise when they don't remove the extra duty.

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  3. But is anyone really surprised?

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  4. Not surprised in the slightest. As I've said before, governments fail to see the point of pubs, and will do nothing to help them.

    Despite Cameron saying that the budget would hurt the working man in the pub (what a strange reversal of roles) I can't see a change of government making much difference.

    ReplyDelete

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