Economy, Taxes Cited for Drop in U.K. Beer Sales July 29, 2008
News Summary
A group representing British pub operators says beer sales in the pubs are at their lowest level since the Depression, and both the general state of the economy and government tax policies are partly responsible, BBC News reported July 28.
The British Beer and Pub Association states that while beer sales have been in a general decline since 1979, the drop in sales over the past 12 to 18 months has been particularly noticeable. Sales in pubs are reported down 10.6 percent from the same quarter a year ago.
Weak consumer spending, high taxation rates, competition from supermarket sales and a smoking ban affecting the pubs are all being cited as reasons for economic hardship in establishments long identified with the British culture.
"Beer sales are on the slide and the tax increase in the budget has made it worse," said Rob Hayward, the association's chief executive. "This is hitting Britain's brewers and pubs hard. It's also creating a large hole in the chancellor's pocket with the Treasury's tax take also down."
The association has confirmed that in June it withdrew a voluntary code that restricted establishments from engaging in alcohol promotions that some say encourage excessive drinking. This relaxation of the voluntary standards has raised speculation that the government will take action to impose mandatory crackdowns on these practices by alcohol sellers.
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