British Beer Sales Tumble By 10 Per Cent

[interestrateripoff]

http://business.timesonline.co.uk/tol/busi...icle5596017.ece

Beer sales in pubs fell by 9.9 per cent in the final quarter of 2008, putting a further big dent in the Treasury’s duty revenues, according to new figures out today.

The decline, revealed in the latest UK Quarterly Beer Barometer, means that British beer drinkers quaffed 1.4 million fewer pints in pubs, bars and restaurants than during the last three months of 2007.

Supermarkets and off-licences, which until recently had remained relatively resilient, also saw a slowdown as Britain slid into recession, suffering a 6.5 per cent fall in beer sales.

The figures, from the British Beer & Pub Association (BBPA), show that overall beer sales through both the off-trade and the on-trade fell by 8.3 per cent during the quarter, taking the fall for the year a whole to 5.5 per cent compared to 2007.

On-trade sales for the year were down by 9.3 per cent while the off-trade decline was just 0.2 per cent.

The BBPA, which has been critical of the Government’s policies towards brewers and pubs, said the fall in beer sales had reduced duty and VAT receipts by about £181 million since the last Budget in March. This was despite an 18 per cent rise in duty on beer last year.

Rob Hayward, the BBPA chief executive, said: “These figures highlight the extreme economic pressures hitting Britain’s beer and pub sector. Beer sales are sinking and many pubs are struggling to survive. Pub closures have escalated to nearly six a day. Unfortunately, Government tax policy is only making a difficult situation worse.”

Mr Hayward said the mandatory code of practice being brought in under the Crime and Police Bill would add up to an extra burden to pubs of £300 million this year. He added: “It’s time for the Government to a great British industry.”

Tax and tax and tax until there is no industry left and then find something else to tax.

This govt certainly knows what it's doing.

[Gone baby gone]

Well, I do my bit to help beer sales

In all seriousness, I used to think that after smoking, drinking would be the next target of our taxing, controlling overlords. I still think it will be, but I think they will introduce a new tax on off-sales. Thanks to the smoking ban being introduced at what is the worst possible time in history, many publicans are struggling and further disincentives - like duty hikes - on beer will just make things worse.

[Nelly]

I actually went out last night first time this year (cant take the smoking ban its just too anoying) the pub I went too I used to go 3 nights a week, aparently its shutting 2 days a week now.

[bagsos]

Well, I do my bit to help beer sales

In all seriousness, I used to think that after smoking, drinking would be the next target of our taxing, controlling overlords. I still think it will be, but I think they will introduce a new tax on off-sales. Thanks to the smoking ban being introduced at what is the worst possible time in history, many publicans are struggling and further disincentives - like duty hikes - on beer will just make things worse.

I think the limit of inelasticity has been reached on pub beer prices. And the problem with a tax on off sales is that it will make that quarterly trip to France in the hired white van even more popular, especially for those living in the south, and thus reduce the tax take from alcohol further. My guess for revenue raising would be more tax on fuel and motoring - petrol is difficult to smuggle and store.

[interestrateripoff]

I think the limit of inelasticity has been reached on pub beer prices. And the problem with a tax on off sales is that it will make that quarterly trip to France in the hired white van even more popular, especially for those living in the south, and thus reduce the tax take from alcohol further. My guess for revenue raising would be more tax on fuel and motoring - petrol is difficult to smuggle and store.

I think the inelasticity has been reached for many products not just beer.

[Gone baby gone]

I think the limit of inelasticity has been reached on pub beer prices. And the problem with a tax on off sales is that it will make that quarterly trip to France in the hired white van even more popular, especially for those living in the south, and thus reduce the tax take from alcohol further. My guess for revenue raising would be more tax on fuel and motoring - petrol is difficult to smuggle and store.

More tax on fuel is a given. Not sure how much they can away with on top of that, as the public mood is clearly against congestion charging and road pricing.

We are being softened up for additional taxes on alcohol by all the bad press & 'studies' showing how the average middle aged couple drink a bottle of wine between them and our kids are rolling around drunk on the streets. Rather than tackling this need some people feel to escape life, they will try to remove the escape mechanism!

I have to disagree about people driving to France to stock up. If, as you say the price of fuel is raised, the trips will become harder to justify. As with all these things, the tax rises are a slow drip, drip, so are barely perceptible until 5-10 years later when you look back in wonder.

[bagsos]

I think the inelasticity has been reached for many products not just beer.

Couldn't agree more. As I observed in the anecdotals thread, when the chain restaurants halved their prices, their London branches were full again. Wetherspoons sells beer at 99p a pint and the one nearest me is always rammed. None of the other pubcos have tried it because their business models, which is essentially based on being a property co charging sky high rents to its tenants that happen to sell beer, are totally outdated. I expect there to be a big shakeout soon, with one of them (probably Punch) not being around in its current form for very much longer, and the others having to adapt quickly or die.

[bagsos]

More tax on fuel is a given. Not sure how much they can away with on top of that, as the public mood is clearly against congestion charging and road pricing.

We are being softened up for additional taxes on alcohol by all the bad press & 'studies' showing how the average middle aged couple drink a bottle of wine between them and our kids are rolling around drunk on the streets. Rather than tackling this need some people feel to escape life, they will try to remove the escape mechanism!

I have to disagree about people driving to France to stock up. If, as you say the price of fuel is raised, the trips will become harder to justify. As with all these things, the tax rises are a slow drip, drip, so are barely perceptible until 5-10 years later when you look back in wonder.

Don't forget you can fill your car up in France too!

[Nelly]

When you weigh up petrol versus beer prices its unreal

Beer it 20 quid a gallon petrol is 5

when 80% of beer is water and falls out of the sky for free versus digging up oil on the other side of the world, and processing and shipping etc.................... seems a little odd.

[dinker]

Haven`t been in a pub since Labour brought in the smoking ban, petty fascism.

[aa3]

At one point when the Soviet Union was deteriorating they screwed up the production and distribution of Vodka and there was shortages in parts. Soon angry people were taking to the streets and protesting not just the vodka shortage. The Soviet leaders moved heaven and earth to quickly get the vodka flowing again.

[interestrateripoff]

Haven`t been in a pub since Labour brought in the smoking ban, petty fascism.

Don't live with someone with asthma then?

I miss coming home smelling of fags even though I don't smoke, happy days...

[Gone baby gone]

Don't forget you can fill your car up in France too!

True, but last time I was in France (this summer) the fuel there was the same price as the UK!

[Umaguma]

Commercially produced beer costs about 15p a pint to make. tax is about 40p, the breweries and landlords take as narrow margin as possible with the lions share going to the pub companies (Punch Enterprise etc) who are nothing more than massively leveraged property speculators whose least care is the British pub. :angry:

[danuttah]

This doesn't appear to be on in the article above, however, on the version on the BBC website it states this:

The Treasury said the higher duty was used to help fight child poverty.

What a bunch of c**ts, lets just fish out the best reason we can to nicely justify the hike in prices, child poverty will do...

Edited January 27, 2009 by danuttah

[dinsdale]

This doesn't appear to be on in the article above, however, on the version on the BBC website it states this:

What a bunch of c**ts, lets just fish out the best reason we can to nicely justify the hike in prices, child poverty will do...

Pathetic isn't it? Did you know that if you have to go to court for a speeding offence you now have to pay a 'surcharge' on the fine which goes towards victims of domestic violence.

[Gunboat Diplomacy]

Child poverty my **** they need the tax to fight the odd war and bail out banks

[Minesapint]

Commercially produced beer costs about 15p a pint to make. tax is about 40p, the breweries and landlords take as narrow margin as possible with the lions share going to the pub companies (Punch Enterprise etc) who are nothing more than massively leveraged property speculators whose least care is the British pub. :angry:

You seem to have forgotten the VAT on a £2.50 pint is 32p taking you up to 72p or ~ 30% in total straight to Gordon. Cheers!

[6538]

Wonder if we will ever get Gordo banning the private sale of alcohol alltogether and bringing it all under a massive state monopoly like Sweden does?

http://en.wikipedia.org/wiki/Systembolaget

It's quite scary in a 1984 sort of way but I bet the Zanulabour control freak types must get wet dreams about a massive state controlled monopoly called "The System".

Edited January 27, 2009 by 6538

[Ruffneck]

Well, I do my bit to help beer sales

In all seriousness, I used to think that after smoking, drinking would be the next target of our taxing, controlling overlords. I still think it will be, but I think they will introduce a new tax on off-sales. Thanks to the smoking ban being introduced at what is the worst possible time in history, many publicans are struggling and further disincentives - like duty hikes - on beer will just make things worse.

they cant tax make your own cider mate

it's the way of the future

[The Pale Rider]

I actually went out last night first time this year (cant take the smoking ban its just too anoying) the pub I went too I used to go 3 nights a week, aparently its shutting 2 days a week now.

Last year there were 6 public houses in our town centre ....this year down to 3.

[The Pale Rider]

Commercially produced beer costs about 15p a pint to make. tax is about 40p, the breweries and landlords take as narrow margin as possible with the lions share going to the pub companies (Punch Enterprise etc) who are nothing more than massively leveraged property speculators whose least care is the British pub. :angry:

Your right. Coverage on the radio yesterday of 100 landlords protesting against Enterprise Inns and Punch Tavern who make them buy beer exclusively from them at a higher price than they can buy it at the supermarket!

One guy was 150 000 i debt trying to stay afloat!

[redmen9]

On the plus side:

Alcohol-related deaths 'falling' from the BBC

Alcohol-related deaths 'falling'

The number of alcohol-related deaths has started to decline after years of steady increases, figures from the Office of National Statistics show.

There were 8,724 such deaths in the UK in 2007, or 13.3 per 100,000 people, down from 13.4 the previous year.

[6538]

they cant tax make your own cider mate

it's the way of the future

I now make all of my own wine and beer. Hardly bought alcohol in months and I reckon I'm saving a grand a year. It's also better than most of the shite you buy.

Interestingly, if you make your own cider or perry you can sell it without charging duty.

[bagsos]

On the plus side:

Alcohol-related deaths 'falling' from the BBC

Alcohol-related deaths 'falling'

The number of alcohol-related deaths has started to decline after years of steady increases, figures from the Office of National Statistics show.

There were 8,724 such deaths in the UK in 2007, or 13.3 per 100,000 people, down from 13.4 the previous year.

You have to be careful with these stats - there is serious political motivation from the people who put them together, from the ground up. As an example, my 94 year old grandma died a few years ago of heart failure. She had smoked all her life. The death cert said "Smoking related congestive heart disease" as the cause of death. I asked the doctor why he simply hadn't put "old age" and he explained that they were under instruction to include smoking as part of the cause of death whereever possible when a smoker dies. I imagine the same applies to drinkers too.