UK: CAMRA calls for budget freeze following 4% hike in beer charges

The Campaign for Real Ale (CAMRA) announced on March 16 it has called on Chancellor Gordon Brown to make a freeze or cut in excise duty on beer and cider in the 2006 budget after real ale prices rose by 4.28 per cent in 2005.

A prices survey carried out by CAMRA’s 200 branches across the UK has shown that the price of a pint of real ale has now risen to an average of 224p from 215p in early 2005. The average price of a pint of lager has risen to 245p to 236p.

CAMRA is urging the Government to freeze or cut the amount of excise duty on beers and ciders to stop prices from sky-rocketing.

CAMRA Chief Executive Mike Benner said: “Even the smallest increase in tax will blast a hole through the pocket of the pub-visiting public. “Last year the Chancellor increased beer duty by only a penny - however as our survey proves the cost passed on to consumers has been considerably higher.

“High excise duty rates have negative consequences for consumers, the UK economy, and local communities. Also a reduction in excise duty would reduce incentives for small-time smugglers to bring cheap alcohol from abroad into the UK.

“We understand that pubs have increasing costs such as rates, energy etc, but these rises seem excessive and disproportionate.”

Key findings of the survey:

The average price of real ale rose by nine pence (4.28%) to 224p
The average price of lager rose by nine pence (4.04%) to 245p
The cheapest region is the North West where a pint of real ale costs 197p and lager costs 221p
The most expensive regions were London and the South East where a pint of real ale costs 242p and a pint of lager costs 264p and 261p respectively.
The highest price rise was in the North where real ale went from 196p to 206 p (5.34%) and lager rose from 223p to 235p (5.12%).

CAMRA is also lobbying the Government to retain the current system of Small Breweries Relief, which is essential for enabling small breweries to compete on a level playing field with larger brewing companies.

Mike Benner said: “Small brewers lack the economies of scale, access to market and alternative revenue sources which larger brewers benefit from, and Small Breweries Relief redresses these disadvantages.”

The surveying was carried out during February 2006. 1121 pubs were visited by our branches throughout the UK. The pubs were a mixture of managed, tenanted and free houses and pubs owned by brewers and pub companies.

CAMRA has run an annual prices survey for the last 18 years. Details of past surveys are available from CAMRA.

Small Breweries Relief, or progressive beer duty, was introduced in 2002. Currently it allows reduced rates of excise duty to brewers who produce up to 60,000 hectolitres.

E-malt.com, the global information source for the brewing and malting industry professionals. The bi-weekly E-malt.com Newsletters feature latest industry news, statistics in graphs and tables, world barley and malt prices, and other relevant information. Click here to get full access to E-malt.com. If you are a Castle Malting client, you can get free access to E-malt.com website and publications. Contact us for more information at marketing@castlemalting.com .