Budget: CAMRA angered by tax increase

March 22, 2007: In what was almost certainly his final budget, Chancellor of the Exchequer Gordon Brown's parting shot for beer drinkers was a penny a pint rise in excise duty.

But the Campaign for Real Ale (CAMRA) says the increase will hit Britain's pubs hard. The 84,000-strong consumer organisation had called on the Government to freeze excise duty, saying a decision to increase tax was likely to result in higher prices, fewer customers in pubs, and a drop in revenue for the treasury.

CAMRA chief executive Mike Benner said: “This is a false economy for the Government as we may now see an exodus from pubs after beer prices rise.

"This is bad news for the millions of people who enjoy British pubs but will now face a higher cost to visit them. Therefore trips to the pub will become less frequent and the revenue the Government makes from VAT will suffer.

"At a time when 56 pubs a month are closing, the smoking ban is imminent and supermarkets are selling beer at ridiculously low prices, British pubs needed a lifeline from their government and that has been denied them."

Cider will rise, too, by a penny a litre. Mr Benner commented: "Cider has recently been selling very well in the on-trade, but the news of an excise duty increase could hamper its resurgence.”