Theresa May faces fury of MPs over plans to add 4p to the price of a pint in £100million Budget Day raid
More than 30 furious Tory MPs have signed a letter urging the Government to scrap plans to increase the tax by 3.5 per cent — with beer duty in the UK already the third highest in Europe at 54p for a pint of strong lager
THERESA May faces a beer duty rebellion amid warnings a £100million Budget Day rise will add 4p to the cost of a pint.
More than 30 furious Tory MPs have signed a letter urging the Government to scrap plans to increase the tax by 3.5 per cent.
And pub chiefs are warning that hundreds more pubs will close if the sky-high tax goes any higher – costing 3,000 jobs across the trade.
Beer duty in the UK is the third highest in Europe at 38p on 3.5% ABV lager and 54p for a 5% ABV pint.
The tax is three times the average rate across the EU and roughly 12 TIMES higher than in Germany or Spain.
Tory backbencher Nigel Evans last night stormed: “Pubs are facing a tax bombshell and unless the Chancellor reverses his plans, hundreds of pubs will close their doors for the final time.
“I have written an open letter to the Chancellor which has been signed by dozens of Conservative MPs so far.
“The Chancellor must take on board the voices of his own backbenchers.”
Pubs also face a second tax blow with business rates set to go up again in April – adding a further £80 million cost onto the industry.
Brigid Simmonds, chief exec of the British Beer and Pub Association, said: “A Government that is serious about backing business should be planning a Budget to help pubs.
“We face a double whammy of beer tax and business rates increases which will see more pubs close.”
Figures in August revealed pubs were still closing at the rate of 18 a week in Britain – with 476 closures over the first six months of 2018.
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The Campaign for Real Ale (CAMRA) said four out of five people had seen a pub shut within five miles of their own home over the past five years.
Experts blame changing lifestyles and the smoking ban for much of the demise of the traditional boozer.
But the average price of a pint has soared to £3.69 – up from £2.87 five years ago. The typical price in London is now £4.44 – up 24p in a year.
A 3.5 per cent increase in the Beer Duty in the Budget will add 2p onto the tax rate – but as much as 4p onto the price of a pint given VAT and higher supply chain costs.
The pub trade contributes around £23.1 billion to the economy each year.
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