A PROPOSED government increase in alcohol duty has been branded as "unsustainable" for the pub industry by Hospitality Ulster.
Chief executive Colin Neill has said the UK government should not use inflation as a basis to increase alcohol duty in the upcoming budget, as currently planned. Such a move would put an extra 2p on the price of a pint of beer.
"With £1 in every £3 spend in a pub already going to the Exchequer, any further increases in alcohol duty is unsustainable," he said.
"Beer accounts for 60 per cent of pub sales and between 2008 and 2013, duty on beer increased by 42 per cent, at the same time beer sales in pubs fell by 24 per cent.
"We have also witnessed a rise in home drinking and the conresponding closure of pubs as large supermarkets continue to sell cheap alcohol as a footfall driver and simply push the increase back to the supplier or absorb the rise.
"With over 1,000 pub closures in Northern Ireland since the 1970s, it is worth noting that whilst our hospitality industry sustains over 60,000 jobs, over 45,000 of these jobs are in food and drink and our pubs remain a major part of our tourism offer."
"This would be second tax rise in less than 12 months and would undo all of the modest cuts that came in recent years in a bid to cut the extremely high tax on beer. We would urge the Chancellor not to go down the route of rising duty and closing pubs," Mr Neill added.
The Autumn budget will be revealed by Chancellor of the Exchequer Philip Hammond on November 22.
