As the country awaits one of the grimmest budgets ever, there is much interest in the trade press in whether the Chancellor will scrap the beer duty escalator. While there is little doubt that this is a regressive and unfair tax that will do long term damage to beer drinking in pubs, the fiscal reality is that Mr Darling needs cash now. Longer term damage to the pub sector (if it is ever tackled at all which is doubtful) will have to be dealt with by the next government and it ain't likely to be this one. Not Mr D's worry then.
So given the pleadings of the industry, will he scrap or ameliorate the escalator, which since the Chancellor increased duty by 18% last year has seen 2,000 pubs closing with the loss of 20,000 jobs? I fear not. The need to balance the books will overcome any such inclination.
Prepare to pay more for your pint.
Click here to see Mike (No Beard) Benner Chief Exec of CAMRA pleading the "Don't do it" case.
