FoodBev: Budget Report 2008

By Shaun Weston*& Mike Ramey*

British Chancellor Alistair Darling has disappointed non-alcoholic beverage makers by ignoring calls to reduce the tax on fruit juice and smoothies.

In his first budget, Darling announced heavy tax increases on beer, wine and spirits, but left the 17.5% VAT rate on juice and smoothies unchanged.

Mr Darling said: “It is only because I have taken these decisions on alcohol, and on closing tax loopholes, that I am able to provide additional support for families, and lift more children out of poverty.”

A petition launched on the 10 Downing Street website by leadingsmoothie maker innocent drinks gathered more than 20,000 signatures insupport of a tax cut, and almost 60 MPs signed an Early Day Motion onthe subject.

CAMRA response
The Campaign for Real Ale (CAMRA) has hit out at the Chancellor’s decision to increase beer duty by 4p a pint, together with annual increases of 2% above inflation for the next four years.

Mike Benner, Chief Executive of CAMRA, said: “The Chancellor has failed to recognise that well-run community pubs are the solution to Britain’s binge drinking problems. This budget will do nothing to stop binge drinking, but it will lead to pub closures on a huge scale, widen the gap between supermarket and pub prices and encourage smuggling and cross-border shopping. It’s a great big nail whacked ruthlessly into the coffin of the British pub.”