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Down with the Duty Escalator!

Discussion in 'UK & Ireland' started by jazzyjeff13, Feb 8, 2013.

  1. This is a perennial topic that raises it's head now and again, but I think it's worth mentioning.

    I received an email from Wychwood earlier about persuading the government to review the duty escalator and support British pubs. I know Marstons isn't everyone's favourite brewery, but this issue affects all UK brewers and beer drinkers.

    Go here to send a letter of support to your MP:
    http://www.wychwood.co.uk/#/mischief//bpny

    You never know - democracy might actually achieve something good for once.....
  2. Marston's is a very good brewery though mainstream.
    The petition for the removal of the escalator reached the required 100 000 signatures so it has to be considered by the government.
    The problem is that really the beer industry exists in two parts-the off sales which can absorb the extra duty and on sales-pubs and clubs-which have to pass it on , and in doing so incur extra VAT.
    When taxes go over a certain rate sales begin to decline and the tax take falls. This hasn't been reached yet because the fall in pub sales is taken up by off sales.This effectively transfers business from pubs to supermarkets (which really don't need it as they probably make little profit from it anyway)........so overall there's no need from the Chancellor's point of view to stop the escalator.
    I had a long chat with the CEO of SIBA about this-the obvious solution of separate tax rates for on sales and off sales isn't allowed under EU regulations.This would have addressed the problem quite well.One solution mentioned was a "responsible drinking" levy in off sales , the rationale being that drinking in pubs is supervised.
    When a pub closes though , and many are doing so because of high costs , it causes a loss of jobs and local financial activity which might well outweigh the extra revenue brought in by tax and duty rises.This point is one which needs to be brought to the attention of the Chancellor.
  3. Marstons are actually alright. I think it's just Wychwood drinkers (the type who think they're superior to lager drinkers and massively adventurous) who are annoying.

    I like their single hop beers. Usually the best my local has.

    Just found out from that site that my local mp is a Lib Dem :( Maybe if I get her to promise to argue for a tax raise she'll argue for a tax reduction?

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