Fuller's calls for pre-budget beer duty cut

By Matthew Scuffham

LONDON (Reuters) - Michael Turner, the chairman of pubs and brewing group Fuller Smith, & Turner, has called on Chancellor Alistair Darling to cut beer duty in next Monday's pre-budget report amid talk of widespread pub closures.

The Campaign for Real Ale (Camra) has forecast that one in eight pubs will close over the next three years. The industry has been hit by a severe economic downturn which, along with a smoking ban, has encouraged drinkers to take advantage of cheap alcohol offers in supermarkets and drink indoors.

"Clearly, what he needs to do is to put the duty down to encourage sales rather than making it so difficult for tenants," Turner told Reuters in a telephone interview.

In the last budget, beer duty was increased by 9.1 percent and an 'escalator' was introduced which would see alcohol duties increase by 2 percent above inflation for the next four years.

The Treasury has actually received less in duty since then because of a decline in beer sales volumes. The British Beer and Pubs Association (BBPA) said beer sales in pubs fell 8.1 percent in the last quarter.

The BBPA estimates the Treasury has collected 138 million pounds less in beer duty and VAT since the last budget and faces a 1.2 billion pounds tax shortfall over the next three years.

"I sincerely hope he (Alastair Darling) has got the message because it's very important that he understands that all he's doing is killing the golden goose," Turner said.

Turner's comments echo those made by the chief executive of rival pubs group Young's, Stephen Goodyear, on Thursday.

(Editing by Paul Hoskins)