Brigid Simmonds: Opinion
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Pubs are at the centre of our community and have been for hundreds of years. They are a place to meet, to socialise, a fulcrum for community cohesion. However, they are under unprecedented pressure during the recession, with 53 pubs closing each week.
George Orwell talked about people going to the pub as much for conversation as for beer. The numbers support his argument: about 83 per cent of the population say that the closures put community spirit and values under threat; almost two thirds believe that pubs are an important part of their local community; and six in ten say that a pint of beer and the pub are symbols of the British way of life.
In addition to community value, there is an economic contribution. Pubs inject £80,000 a year into their local economy and pay £107,000 in tax. Pubs and brewing employ 540,000 people directly and 380,000 in associated trades. Ninety-eight per cent of all beer drunk in Britain is brewed domestically. It is a British manufacturing industry that deserves government support.
Changes to the way we live, work and play are changing the way we socialise and use pubs, but public policy is playing a big part in escalating the pressures. At the heart of our problems is tax. Tax on beer has risen by 20 per cent, or £600 million since the Budget of March 2008. When VAT was cut to 15 per cent in 2008, beer tax was increased by 8 per cent to compensate — spirits by 4 per cent. Government coffers are under severe constraint, but with VAT due to go back up on January 1, the 6p increase in beer prices could accelerate pub closures, job cuts and that loss of community cohesion, which in this recession, the country can ill-afford to lose. This is something the Government must address in the Pre-Budget Report.
Research by Oxford Economics shows that a 2 per cent cut in beer tax could create 5,000 jobs by 2011. As a result, government tax revenues would actually increase. In fact, even a cut of 8 per cent would still be revenue-neutral.
Rationalising regulation is also a priority. Red tape has grown enormously in recent years, largely prompted by policy pressures over drinking behaviour. We recognise and share current concerns about alcohol misuse and binge drinking, although there are some myths that need de-bunking. Official statistics show that alcohol consumption has been falling for five years and is 14 per cent down since 2004. We sit at No 14 in the European consumption league.
Nonetheless, we all face a challenge in addressing some of the extremes of our drinking culture. We need to focus on enforcing our existing tough laws, rather than inventing ever more tortuous regulation. We want to work in partnership with others to improve social responsibility and accountability. We are actively driving up standards and support an end to irresponsible promotions. The British Beer & Pub Association and its members are involved in a range of national and local initiatives.
But it is time to start valuing a unique product and to build a consensus around the simple proposition that the British beer and pub trade matters too much to our community life to be lost.
Brigid Simmonds is chief executive of the British Beer & Pub Association
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