2004 Budget
The Chancellor Gordon Brown unveiled the 2004 budget on 17th March. CAMRA had been lobbying for an extension to Progressive Beer Duty which was introduced in the 2003 budget. This gives a 50% reduction in duty on the first 5,000 hectolitres of beer brewed by small breweries. Last year PBD only applied to brewers producing 30,000 hectolitres or less. CAMRA argued for an increase to 200,000 hectolitres which would help to ensure the continued viability of 24 small brewers producing between the two limits, and remove the disincentive to increase for brewers to grow beyond 30,000. The Chancellor has gone some way towards this by increasing the limit to 60,000 hectolitres.
CAMRA also continued to plead the case for reduced excise duty, to cut down on incentives for cross border shopping and smuggling, and to support UK pubs and brewers. However Gordon Brown has bowed to pressure from a number of organisations making a counter-argument to increase excise duty, to discourage high levels of under age and binge drinking in the UK. Duty has been increased by 1p on a pint of beer, 4p on a bottle of wine, but frozen on spirits.
The government is concerned that alcohol consumption is back up to the level reached before the First World War, when stricter licensing was introduced to reduce drunkenness. The new Alcohol Harm Reduction Strategy aims to cut down on ‘binge’ drinking and has been welcomed by CAMRA. However it has criticised the Government for a delay in issuing guidelines for the introduction of the new Licensing Act.