Tuesday, 22 June 2010

No Happy New Year for pub goers after VAT increase

- VAT increase means combined VAT and duty rates on a pint in the pub to hit £1 in New Year

- VAT increase means up to 10p increase on a pint

CAMRA, the Campaign for Real Ale, has today predicted that the impact of a VAT hike to 20% in January 2011 will force the rate of pub closure to increase above the current devastating rate of 39 a week.

Mike Benner, CAMRA Chief Executive, said:

‘In the New Year, many pub goers will be hit with a VAT increase that will push up the combined taxation on a pint of beer to over a pound! This historically sad moment for the nation’s 15 million pub goers is compounded by the knowledge that this increase will cause yet more well-run community pubs to shut their doors unless the Government acts. Relentless tax increases on the nation’s pubs are contributing to pub closures, job losses and a decline in community spirit.

‘The announcement of a review into alcohol pricing and taxation this Autumn gives the Government an opportunity to avoid the harm that this VAT increase will impose on pubs. CAMRA will be pressing for targeted measures to support well-run community pubs. These measures could include a new class of business rate relief for community pubs and a compensatory reduction in beer duty.’