The chief executive of Enterprise Inns — the UK’s biggest pub landlord — has launched a stinging attack on the Government’s beer-duty policy.
Ted Tuppen said that, as a consequence of the UK’s “ill-conceived” duty escalator (which is designed so that all tax rises on ale conform to the formula of the retail prices index plus 2%), beer taxes had surged by 42% — putting 55p on the cost of an average pint — since it was introduced in 2008.
He said: “This increase hits pubs harder than supermarkets and is an extraordinary strategy for a Government which claims to support pubs at the heart of local communities.”
He made his comments as Enterprise Inns, which has net debt of £2.7 billion, posted pre-tax profits of £34 million over the year to September 30, compared with a loss of £14 million over the previous 12 months. This was largely because of a smaller write-down in the value of its estate of nearly 6000 pubs in 2011-12.
The company toasted a 2.2% rise in underlying net income at more than 4000 pubs where publicans have been in place for more than a year.
