Wednesday, 25 January 2017
EU-nough to make you weep into your beer
The British Beer and Pubs Association (BBPA) has said that the depreciation of sterling will lead to inflation, pointing out that "higher inflation will also lead to higher levels of indexation for taxes like beer duty, creating a vicious circle when it comes to cost pressures, which is why we are urging the chancellor to cut beer duty on a pint by one penny in the budget." Well, no harm in asking.
As drivers will already know to their cost, the price of fuel has noticeably increased recently. This is mainly because it is priced in dollars, against which the pound has fallen 18% since the EU vote. Smaller brewers tend to move beer in much smaller quantities than the mass brewers, so rising fuel prices will have a disproportionate effect upon their transport costs. Either the prices of their products will have to increase, or they'll go under. In reality, I think we can expect more small brewery closures.
Oh well: at least it's a relief to have taken back control, isn't it?