Cheers George! A positive Budget for brewers

THE brewing industry is celebrating after a number of measures were announced by George Osborne which should benefit the industry.

He announced the scrapping of the beer duty escalator which was predicated on an annual 2% increase above inflation, a move that industry analysts believe could save more than 10,000 jobs, mostly in Britain’s pubs.

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He also announced a penny off a pint which – in the sense that it isn’t an increase – will please drinkers and landlords alike.

But pub companies will also be pleased about the new 20% rate of corporation tax and a decision to cancel September’s planned fuel price hike.

Ernst & Young tax partner Graeme Crawford said: “It has been a good Budget all around for the brewing companies. They have had a reduction in corporation tax and a reduction in fuel costs as well as a penny off a pint. It is good news all round for them.”

William Lees-Jones, managing director of Middleton-based brewer and pub operators JW Lees said: “There is rarely anything positive to say after a Budget, but I am delighted with this news – it’s good to see support for our industry.

“Hopefully it will give operators the confidence to invest in new pubs or in refurbishing old ones.”

He praised Blackburn MP Jack Straw for his call earlier this month for the abolition of the Beer Duty Escalator – which was heeded by the Treasury.