Pub operators say their woes have been ignoredSimon Bowers
The Guardian, Tuesday November 25 2008
The pub industry has accused the chancellor of "turning a deaf ear" to their plight of by ensuring alcohol sales do not benefit from the 2.5 percentage point reduction in VAT.
Alistair Darling said yesterday that duty on alcohol and tobacco would be increased to offset the VAT cut, with a "neutral" impact on the average cost of a pint of beer, bottle of spirits, bottle of wine and packet of cigarettes.
Excise duty on all alcohol products will increase by 8% to offset the VAT reduction - and the chancellor made clear that, unlike the VAT move, this was a permanent measure. This will put 3p on a pint, 13p on a bottle of wine. and 53p on a bottle of spirits. The duty on a pack of 20 cigarettes will rise by 17p.
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