What about Private Sector Brewing?...
Everyone suffers from the escalating tax on beer
"SIR - Has anyone noticed the growing opposition to the annual above-inflation increases of excise duties - the so-called "duty escalators" - that apply to consumer products such as fuel, air travel and beer?
Consumer opposition in the form of e-petitions, cross-party support for a review in the House of Commons and a clear voice from industry, endorsed by independent economists, support the view that these increases are damaging the economy and are a major obstacle to growth, investment and job creation.
Circumstances have changed since such escalator taxes were introduced in 2008: inflation has been higher - affecting the tax rate and raw material costs - and demand much lower than originally envisaged. Consequently tax receipts have fallen well below the Government's estimates.
Duty on beer, for example, has increased by 42 per cent since 2008, with VAT up to 20 per cent on top, and yet tax receipts in September were actually lower than last year. Pubs are closing, jobs are being lost, margins squeezed and investment reduced.
George Osborne, the Chancellor, has stated that the "escalators" will continue to 2014-15. But economic and fiscal policy should be reviewed on an annual basis according to the circumstances of the time, the success of the policy and the health of the sector. If the Chancellor's party is to be re-elected, he will need strong economic growth and a buoyant jobs market. The major industries affected by this tax policy must be a part of that growth. He should also
remember that consumers have votes.
Jonathan Neame
Chief Executive, Shepherd Neame
Faversham, Kent "
http://www.telegraph.co.uk/comment/letters/9693989/Leaders-of-bad-MPs.htmlIgnorance is bliss, bliss is happiness, I am happy...to draw your attention to the possible connectivity in the foregoing.
