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The Chancellor ensures a dry Budget statement

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Time at the bar Darling?

Thursday, 13 March 2008

Yesterdays Budget proved a saints vs. sinner’s calculation as the chancellor raised taxes on drink and cigarettes and promised more help to get more children out of poverty. Although the government claimed it was not the only way to tackle binge drinking the measure is seen as short sighted by some in the drinks industry. The British Beer and Pub Association (BBPA) accusing the government of punishing all beer drinkers. BBPA chief executive Rob Hayward said: "Every single day, the Treasury is losing over £1m in beer taxes and four pubs are closing.” The Campaign for Real Ale responded saying "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." Whilst some major supermarkets are currently offering big brand lagers and beers as cheap as 58p a pint those in the business of running clubs and pubs are sure to feel the pinch with many in the industry claiming pre-drinks at home via purchases from the supermarket shelves will produce later and more inebriated visitors to town centres.

So what are the actual figures? Darling has delayed the 2p rise in fuel duty for six months but brought in a 6% increase in alcohol tax - with a 2% above inflation rise for each of next four years. That will mean 4p on pint of beer, 3p on cider, 14p on wine and 55p on spirits. If you smoke you’ll need to add 11p on packet on 20 cigarettes and 4p on five cigars. And it looks like the carrier bags you bring your supermarket beer home will have to be paid for. At least that what the chancellor hopes as he brings in measures requiring supermarkets to charge for plastic bags if they do not scrap them. Not quite the hard hitting green budget the environmentalists had hoped for. Darlings take on reducing carbon emissions via road tax for the most polluting cars has had a lukewarm response from the global warming worriers as he introduced a £950 higher first year rate of road tax for most polluting cars and a new top band for the most polluting vehicles that emit more than 255g of carbon dioxide per kilometre. Friends of the Earth director Tony Juniper commenting on the Budget Statement said "The Chancellor promised to put sustainability at the heart of today's announcement, but he has merely tinkered in the margins. Mr Darling should have used this Budget to tackle climate change - the biggest challenge the world faces - by making it cheaper and easier for people to go green, including tax breaks for greening the home, and grants for renewable energy. He did announce a number of welcome green initiatives but the overall package falls a long way short of what is required. We urgently need real political leadership on this issue."

Other measures introduced include Air Passenger Duty scrapped in favour of flight tax, an above inflation rise for child tax credit, the introduction of work capability assessments for long term claimants on incapacity benefits, an increase in the Winter fuel payment up to £250 for over-60s and to £400 for over-80s and a promise to try and tackle the discrimination faced by pre-pay metered fuel users who the government believe are twice as likely to be on low incomes as those who pay by direct debit. Energywatch claims the companies are "discriminating" against this group of customers and have made £400m in extra revenue from them.

Responding to the chancellor’s budget statement David Cameron, leader of the Conservative Party said "For people, every time they refinance their mortgage, it's costing them more, every time they fill up their car they are paying more. Every time they shop, food bills are higher and yet every time they get a tax bill, they are paying more. There was no recognition of that in this Budget. The cost of living is going up and Labour is making it worse." Nick Clegg leader of the Liberal Democrat’s claimed increases to winter fuel allowances for the elderly were one-offs and accused Mr Darling of "playing with people's hopes”, claiming the chancellor had "over-egged" any "good news" whilst Caroline Lucas of The Green Party stated “"This Budget isn't Green, it's Brown. After spinning extensively that we were going to see the most environmental budget ever, the government have given us more of the same.” But Darling defended his Budget statement saying "This year's Budget is a responsible Budget that will secure stability in these times of global economic uncertainty." Whether we feel that stability in our purses and wallets as 2008 progresses remains to be seen.

www.direct.gov.uk/en/Nl1/Newsroom/Budget2008/DG_072852?cid=budget2008
www.labour.org.uk/budget_2008
www.conservatives.com
www.libdems.org.uk
www.greenparty.org.uk