The beer duty escalator was introduced in 2008 by Chancellor Alastair Darling. It increased the price of a pint by 2% above inflation every year, this has resulted in a 42% tax increase since 2008.
Chancellor, George Osborne said:
We will now scrap the beer duty escalator altogether.
And instead of the 3p rise in beer duty tax planned for this year by the previous Government I am cancelling it altogether.
I am going to go one step further and cut beer duty by 1p.
We are taking a penny off a pint.
The sad fact is we have lost 10,000 pubs over the last decade.
I intend to maintain the planned rise for all alcohol duties with the exception of beer.
Simon Theakston, Executive Director of Masham-based T&R Theakston Ltd has welcomed the announcement.
Mr Theakston said:
This is absolutely brilliant news.
I never thought I would see the day when I would be actually pleased by a Chancellor’s announcement about beer duty.
By cutting the beer tax, he has given a massive boost to job prospects in Britain’s pubs at a time when it is most needed.
Last month, Julian visited Black Sheep in Masham and joined representatives in Parliament earlier in March to highlight the issue with a barrel made by fellow Masham brewers, Theakston’s.
Julian Smith said:
The brewing and pub industry is hugely important in Skipton and Ripon with world-famous names such as Theakston’s, Black Sheep and Copper Dragon based in the constituency and some of the world’s finest public houses.
The news in the Budget that Labour’s Beer Duty Escalator is being lifted and the planned increase not just cancelled but a 1p per pint cut will be a major boost for the industry and for our rural pubs that are so often at the heart of our community.