UK: Drinks execs challenge UK Chancellor on tax rise
The drinks and pub company execs have called for a "new approach" to beer tax
A group of drink and pub company senior executives has written to UK Chancellor George Osborne, warning the latest beer tax hike will have a “devastating effect” on the sector.
In the letter, seen by just-drinks this week, the 33 executives urge a “new approach” to beer tax following the 7.5% Budget increase last month.
“The sector has the potential to sustain and create thousands more jobs across the UK, generate economic activity and help lead the country out of recession. But, only if we have a fair policy environment,” the British Beer & Pub Association-headed letter states.
The bosses – including Anheuser-Busch InBev UK's president, Stuart MacFarlane, and Carlsberg UK’s CEO, Isaac Sheps – argue the Treasury has over-estimated beer duty income by “hundreds of millions of pounds” in recent years.
“Beer duty has now risen by a staggering 52% since 2004, whereas beer duty revenues have only risen by 8%,” the letter states.
However, a Treasury spokesman countered: “Alcohol duties make a substantial contribution to Exchequer tax revenues, providing important support to the UK’s public finances and deficit reduction plan.”
Beers at or below 2.8%abv will begin to benefit from a tax break in the UK from the start of October, but how big is the opportunity?...
- The post-Brexit winners and losers - Analysis
- What Brexit means for drinks industry? - Analysis
- What does Brexit mean for AB InBev's SAB deal?
- Interview - Seedlip founder, Ben Branson
- Customisable drinks - The next consumer trend
- Carlsberg to close UK distribution arm
- Pernod Ricard exec shuffle - Denis O'Flynn leaves
- Major spirits M&A remains out of sight - analyst
- C&C Group will be a Brexit victim - analyst
- Pernod Ricard gives Beefeater packaging revamp
- Adultifying Soft Drinks; Capitalizing on rising adult demand for non-alcoholic beverages
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends
- Spirits and Wine: Corporate Overview
- Global RTD insights - market forecasts, product innovation and consumer trends