Ahead of the forthcoming Budget the battle has been joined by a new campaign to see the end of the hated Alcohol Duty Escalator!
The Chancellor last year decided not to implement the escalator on beer, and what do you know, as a result, the latest figures show that beer sales have grown - showing consecutive growth in two quarters for the first time in ten years. This in turn has raised more revenue for HMG, protected jobs and seen new investment in the sector. And now Wines and Spirits please!
Do you know that some 79% of the cost of a bottle of spirits and some 60% of the cost of a bottle of wine goes directly to HMG in one tax or another! The alcohol industry in general employs some 2 million people, is a glowing example of excellence, helps tourism, raises billions in tax and at pub level is at the centre of community life. So any action to hold prices down must surely be progressive?
Now there is a new campaign; "CALL TIME ON DUTY" and you can see all of the details on their website: www.calltimeonduty.co.uk
You can also contribute to the campaign by sending the following letter to your MP (courtesy of the campaign). The more they receive the better! So if you want to see the price of your pint, glass of claret and glass of gin not grow once again by 2% above inflation, get an envelope, print off the script below, sign it and down to the post office you go (or maybe email it to your local MP?)
Dear xxxx
I am writing as a constituent to ask you to write to the Chancellor of the Exchequer on my behalf. I would be grateful if you could urge him to call time on his alcohol super tax (the Alcohol Duty Escalator) in the 2014 Budget.
I am supporting the campaign because I cannot believe how unfair the current alcohol tax system is. I find it incredible that if I buy an average priced bottle of spirits, more than three-quarters (79%) of it goes to the Chancellor in tax. The tax on a bottle of wine, nearly 60% of the cost of an average priced bottle, is also ridiculously high, especially if you compare it with France where I would pay 20% or Spain where I would pay 21% in tax.
I just cannot see how it is fair to hit hard-pressed consumers with an alcohol super tax that keeps on rising by 2% above inflation, year on year. Surely the cost of living is already high enough without the Chancellor taking the tax on a bottle of spirits to over 80%, which is what will happen unless he calls time on his unpopular alcohol super tax in the next Budget.
George Osborne talks about creating new jobs and cutting taxes. Calling time on his super tax would do both. Independent research shows that 6000 new jobs could be created and £230 million of additional public finances generated to pay for schools and hospitals if he does the right thing and scraps his super tax.
The fact that my local pub would benefit too is really important. I was pleased when I heard the Chancellor wanted to support pubs, but then I learnt that he increased their tax bill by £34 million in 2013 through his Alcohol Duty Escalator on wines and spirits. This simply does not make sense when 26 million people drink wine in pubs, bars and restaurants, and wine and spirits already account for almost half (42%) of their alcohol sales.
Almost two million people depend on the alcohol industry for their livelihoods, while the industry generates £38 billion for the economy annually and pays £17 billion in tax.
Responsible drinkers deserve a freeze in alcohol duty, not another inflation-busting tax hike. Please could you urge the Chancellor to use his 2014 Budget to do the right thing and scrap this deeply unpopular super tax? I look forward to hearing from you and to receiving a copy of the Chancellor’s response to your letter.
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