Wednesday, April 22, 2009

A kick in the teeth for pubs

Despite intensive lobbying from many quarters, Alastair Darling did not flinch from his plan to increase alcohol duties by 2% above the rate of inflation. In fact, it's even worse than that, as he has used a notional zero inflation rate rather than the -2.25% which is actually forecast. This vindictive, short-sighted measure will undoubtedly accelerate the closure of many more pubs and, ironically, is unlikely to bring in any additional revenue as we are now past the point of diminishing returns from alcohol duties. The only people this will benefit are smugglers and the owners of discount booze warehouses in Calais.