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23rd March 2011

Budget 2011 - CAMRA Response.

CAMRA, the Campaign for Real Ale, has today hit out at the Government’s decision to impose a damaging 7.2% increase in beer duty. The average duty and VAT on a pub pint will now exceed £1!

• Today’s announcement adds 10p to average pint in the pub.
• Consumers to see more low strength beers in pubs after tax on beers at or below 2.8% ABV is halved.
• New CAMRA pre-Budget research shows British consumers on average paying £2.84 on a pint of real ale in a pub, and £3.02 for lager.

In a mixed day for Britain’s beer drinkers, CAMRA has also welcomed plans to halve taxation on beers at or below 2.8% ABV, but has opposed a further tax increase of 25% on beers at 7.5% ABV and above.

With today’s above inflation increases meaning Britain’s drinkers will now be paying well over a pound (pre-Budget CAMRA estimate- 97p) on every pub pint in beer duty and VAT, CAMRA fears the price of a pint will now be increased by up to 10p at the bar, driving consumers away from pubs, and causing further loss of valued community amenities. Beer tax has now been increased since 2008 by two successive Governments by over a third.

New CAMRA research* conducted before today’s Budget found the average price of a pint of real ale in Britain to be £2.84, and the average price of a pint of lager to be £3.02, figures now set to increase in the wake of today’s announcements.

Mike Benner, CAMRA Chief Executive, said:

‘It is incredible to consider that Britain’s beer drinkers are forced to endure the second highest rate of beer tax in Europe, particularly when the Prime Minister promised a “pub friendly Government” with the pub at the heart of the Big Society. By penalising the vast majority of responsible pub goers, the Government is not getting to the root of the problem, which remains cheap alcohol sold in an irresponsible manner in the off trade.

‘While it is welcome to see the Government introducing measures to recognise the benefits of beer as a low alcohol drink, we hope the Government will work with the EU and the wider industry to secure a change in EU rules to increase today’s threshold to 3.5% ABV to further benefit Britain’s beer drinkers.’

Source: CAMRA HQ