GOVERNMENT PLANS COULD ADD 13P TO THE PRICE OF EVERY PINT
A Government Bill to be debated in Parliament on Monday will lead to a massive increase in costs for pubs and bars, equivalent to an extra 13p on every pint sold. These proposals come at a time when the consumers are already paying some of the highest prices in Europe for a pint of beer in their local.
The Association of Licensed Multiple Retailers (ALMR) – the national trade body for pubs and bars – says that if the measures proposed in the licensing reform Bill become law, the sector will face an additional £100 million pounds in costs per year. This is on top of the annual 10p duty rise expected to be announced again by the Chancellor at the next Budget.
Commenting ahead of the debate today, ALMR Chief Executive Nick Bish said,
“If this Bill is passed then every person in the country who enjoys a pint of beer will be forced to pay the price.
“These proposals will allow local authorities up and down the country to double the amount they charge in licensing fees. Pubs simply cannot afford to absorb these cost hikes so it will inevitably hit customers in the pocket.
“This couldn’t come at a worse time for the industry, particularly as supermarkets continue to sell alcohol at ridiculously low prices despite pledges by the government to tackle this problem.
“We are calling on the government to think again and look at the impact that these plans will have on the pocket of the responsible drinker and their local community pub.”
Notes to Editors
The ALMR is the only national trade body solely dedicated to representing the interests of pubs and bar operators. It has over 90 member companies and their 8,000 pubs and bars.
The Police Reform and Social Responsibility Bill will debated in the House of Lords on Monday and Wednesday next week. The Bill contains Clause 123 which will allow Local Authorities to increase licensing fees by £100 million according to the ALMR’s own estimates.
Industry estimates are that 3,204,000 barrels were sold in the on-trade in 2010. This equates to 922,752,000 pints sold last year. The government’s proposals could lead to an extra £100m worth of costs for the on-trade. If all these costs were put on to beer then £100m divided by the pints sold is 11p more per pint; with VAT at 20% this is equivalent to 13p added to every pint.
Pubs and bars obviously sell more than just beer, so price increases would actually be spread more widely, but for illustration and impact we have applied them here to beer sales.
For further information please contact:
Nick Bish on 07831 778993 or email email@example.com
Association of Licensed Multiple Retailers
9B Walpole Court, Ealing Studios, London, W5 5ED
tel: 020 8579 2080 or fax: 020 8579 7579 or mob: 07831 778993
Registered office – as above. Registered in England & Wales No: 3964186
– Michael Kheng