Campaign Win! Three cheers to the beer tax hat-trick
The Chancellor has announced an unprecedented third cut in beer duty as well as a 2% cut to cider tax, thanks to the campaigning efforts of thousands of CAMRA members.
This is another huge success and a testament to all of those who supported the fight to further reduce the tax on beer. Working together, CAMRA campaigners like you helped secure the support of 114 local MPs ahead of the Budget, which mounted huge pressure on the Chancellor to deliver another Budget for beer drinkers.
Tim Page, CAMRA Chief Executive says: "The last two cuts have already had a huge impact, saving over 1,000 pubs from closure and keeping the price of a pub pint down. Independent research by CEBR forecasts that the price of a pub pint will now be more than 20p cheaper than it would have been had the beer duty escalator remained in place.
A third cut in beer tax is a huge vote of confidence in the importance of pubs and brewing. It will help ensure the sector returns to long term growth after many years of pub closures and falling beer sales, caused in part by a 42% beer tax increase between 2008 and 2012, and throw a lifeline to struggling community pubs across the country.
"Britain is known around the world for great pubs and real ale, and we should all be incredibly proud that this industry has just reported growth for the first time in a decade. We hope Britain's millions of pub goers will head to their local this evening to give three cheers to a historic third cut in beer tax!"
Last month CAMRA launched a report outlining the benefits of two beer duty cuts and the scrapping of the beer duty escalator to MPs and Ministers. The report helped form CAMRA's Budget Submission and provided a strong evidence base to lobby the Chancellor to support a third cut in beer duty.
Scott Corfe, Head of Macroeconomics at Cebr and author of the report says: "Today's duty cut continues the welcome change in policy stance with regards to supporting the brewing and pub industries. Our research showed that the two previous beer duty cuts had already had a significant impact on the price the consumer was paying for a pint of beer. With today's cut we expect the average price of a pint of beer will stand some 22p lower in 2015 compared with a continuation of the previous escalator system."
The Chancellor also announced a cut in cider duty by 2%, which will be welcome news to the industry which is currently under serious threat from the EU.
Tim Page adds: "CAMRA supports the production and availability of real ciders and perries, as well as real ale, so welcomes the Chancellor's decision to cut tax on cider by 2%. With the tax exemption for small producers under threat, it is now more important than ever for the UK Government to show support for this small but vibrant industry."
CAMRA has launched a petition asking the Government to reject the EU request to remove duty exemption for small cider producers making less than 70 hectolitres (hl) of cider. So far the petition has secured over 10,000 signatures – add yours today.